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Hypothesis Tests and Confidence Intervals

David Aronson

The following excerpt is from Chapter 5 of David Aronson's recently published book "Evidence-Based Technical Analysis". Together with Chapters 4 and 6 of the book it addresses aspects of statistics that are particularly relevant to evidence-based (as opposed to subjective) technical analysis.


Statistical inference encompasses two procedures: hypothesis testing and parameter estimation. Both are concerned with the unknown value of a population parameter. A hypothesis test determines if a sample of data is consistent with or contradicts a hypothesis about the value of a population parameter, for example, the hypothesis

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