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p-value and level of significance explained

Posted on November 29, 2017 at 4:30pm 2 Comments

The concepts of p-value and level of significance are vital components of hypothesis testing and advanced methods like regression. However, they can be a little tricky to understand, especially for beginners and good understanding of these concepts can go a long way in understanding advanced concepts in statistics and econometrics. Here, we try to simplify the concept in an easy, logical manner. Hope this helps.


In hypothesis testing, we set…


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