Hypothesis Testing: Null vs Alternate Hypothesis
1. Context
In this video from FRM Part 1 Quantitative Analysis section, we construct an appropriate null hypothesis and alternative hypothesis and distinguish between the two. We also differentiate between a one-sided and a two-sided test and identify when to use each test. The details of the reading in which this topic appears are given below:
Area | Quantitative Analysis |
Reading | Hypothesis Testing |
Reference | Chapter 6. Hypothesis Testing In GARP Official Books (FRM Part I, QA section) (GARP, 2020). |