Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

This article reviews important concepts and methods that are useful for hypothesis testing. First, we discuss the Neyman-Pearson framework. Various approaches to optimality are presented, including ...

In the realm of technical product development, hypothesis testing acts as a bridge between design, data and decision-making. It enables teams to move beyond assumptions and validate their ideas ...

Bayesian hypothesis testing for nonnested hypotheses is studied, using various "default" Bayes factors, such as the fractional Bayes factor, the median intrinsic Bayes factor, and the encompassing and ...