# Hypothesis Testing

I was reading Hypothesis Testing and didn’t get it at all. I also saw that in the Schweser notes they have mentioned that it is not to worry about the messy formulas and testing. I have wasted too much time wrapping it around my brain. And feel very frustrated because I am still not getting it. Is anyone feeling the same way? Can I skip this chapter altogether?

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You’re free to do as you please with anything in life. However, I would strongly advise against skipping Hypothesis Testing. This is a critical topic at level 1, which is expanded on at level 2 in the econometrics chapters.

More importantly, this is something that you just need to understand in finance.

ROA

In level 1, you need only a high-level view of hypothesis testing and actually, you do not need to learn the formulas. However, bear in mind that, this is expanded and discussed in much detail in level 2.

The body achieves, what the mind believes.

You’re here to learn. So you’re better learn. Sweat now rather than regret later!

Anyway, what are you struggling with? A lot of folks here can help.

At the bare minimum you should know how to properly formulate the null and alternative hypothesis regarding the values of means and variances. Furthermore you should know when to reject or not reject a null hypothesis. Those are crucial elements to the hypothesis testing chapter.

No. You can’t skip that chapter.

If you scared go to church - you knew the job was dangerous when you took it.

¯\_(ツ)_/¯ It be like that sometimes.

hypothesis testing is the basis of statistics at both levels 1 and 2, and crucial to understand as an analyst. If you were asking about microeconomics I’d say yeah, skip that sh*t. But not hypothesis testing

mheithy wrote:

If you were asking about microeconomics I’d say yeah, skip that sh*t.

You heretic!

¯\_(ツ)_/¯ It be like that sometimes.

mheithy wrote:

hypothesis testing is the basis of statistics at both levels 1 and 2, and crucial to understand as an analyst. If you were asking about microeconomics I’d say yeah, skip that sh*t. But not hypothesis testing

Skip readings at your own risk. They have a tendency to come back and haunt you later.

If you're the first out the door, that's not called panicking

Codtrawler87 wrote:

mheithy wrote:

hypothesis testing is the basis of statistics at both levels 1 and 2, and crucial to understand as an analyst. If you were asking about microeconomics I’d say yeah, skip that sh*t. But not hypothesis testing

Skip readings at your own risk. They have a tendency to come back and haunt you later.

+1

mrow