p-value

CFA Level II
#1

how do you calculate it? Where does it come from? I know what it is but I don’t understand why it pops up when discussing ANOVA tables, t-stats, and f-stats…

#2

I think we do not need to know how is it calculated (for exam). There are many other nice things to know and remember, so why bother. If you do - check Internet. I think it’s some pretty complicated function or equation which can not be solved algebraically, only numerically

#3

ok so just be ready to compare it to the significance level?

#4

it will always be given to you

#5

gazhoo Wrote: ------------------------------------------------------- > ok so just be ready to compare it to the > significance level? Exactly! Actually it’s very handy, when I check results of LR at work for significance - I check p -values first

#6

if the level of sig you are testing for is > p val reject !!! p val is the smallest level of sig for which the null could be rejected.

#7

thanks guys

#8

p-value is calculated from regression analysis with complex mathematical software like Stata, etc