One proportion Z-test explained (Excel)
How to determine whether a coin is fair, that is, whether it returns heads 50% of the time? Or whether an asset manager beats the market more often than in 50% of trading days? A very useful test to determine statistically significant deviations in categorical data like these is the one proportion Z-test. Today, we are going to learn about the concept and the mathematics behind the test and how to apply it in Excel.
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Thank you for this video! Very helpful.
can you expound the interpretation of p-value of 65.47%?
@NEDLeducation
Жыл бұрын
Hi, and thanks for the question! This means there is a 65.47% chance that the evidence is consistent with the null hypothesis (that proportion is equal to the hypothesised value). As this probability is high, we cannot reject the null hypothesis.
Hi sir Why you have put 50% in expecting frequency
@NEDLeducation
Жыл бұрын
Hi Vignesh, this is just an example which depends on your null hypothesis. Here, we tested whether a coin is fair, that is, whether heads and tails are equally likely (50%). Other hypothesis might call for other expected probabilities to test for the null hypothesis.
@vigneshs7789
Жыл бұрын
@@NEDLeducation thank you brother