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p-value

dennis_cmpe

New Member
The notes mention that p-value is just the smallest confidence level that determines if we should reject the null hypothesis.

But how do we calculate the p-value?
 

David Harper CFA FRM

David Harper CFA FRM
Staff member
Subscriber
You probably cannot calculate p value at the exam. Unless you were given, or found that, normal (z) test statistic = -1.645 or z = -2.33 [where z = (sample mean - hypothetical pop mean)/standard error], then you should know that p = 5% or 1%.

Otherwise it's a lookup on a stat table, which is equivalent to NORMSDIST() for normal or TDIST() for student's t. So, I would not expect a CALCULATE question for the p value but rather something conceptual/qualitative

David
 
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