# Pvalue

An analyst suspects that the average PE ratio for an index is at the most 15. She finds that the average PE and standard deviation of a sample of 40 is 16.5 and 7 respectively. At an alpha of 0.02 what is the p value of this test?

.98

getterdone Wrote: ------------------------------------------------------- > .98 nope

getterdone Wrote: ------------------------------------------------------- > .98 formula ?

the p value is the one thing on stats I can NEVER remember for som stupid reason! daj I used 1- alpha

I am confused as well… so waiting for other people. However the result is 0.0869.

you usually find it by trial and eror, or use some excel sheet, etc. Unless there is a trick to this, don’t expect a question like that.

for your convenience. standard error = 7/ sqrt(40) = 1.1068 strangedays Wrote: ------------------------------------------------------- > An analyst suspects that the average PE ratio for > an index is at the most 15. She finds that the > average PE and standard deviation of a sample of > 40 is 16.5 and 7 respectively. At an alpha of 0.02 > what is the p value of this test?

ahhh then you minus 1 and minus alpha I take it? that gives you the correct value. please verify

THis the result I have: The p value of a test is the lowest level of significance for which the null hypothesis may be rejected. The z statistic is calculated as 1.36 The probability remaining in a one-tailed test 1.36 standard errors below the mean is 0.0869. However to me its still not clear

P-value was not give a lot of explanations in the curriculum, whoever can explain it, please help. strangedays Wrote: ------------------------------------------------------- > THis the result I have: > > The p value of a test is the lowest level of > significance for which the null hypothesis may be > rejected. The z statistic is calculated as 1.36 > The probability remaining in a one-tailed test > 1.36 standard errors below the mean is 0.0869. > > However to me its still not clear

getterdone Wrote: ------------------------------------------------------- > ahhh then you minus 1 and minus alpha I take it? > that gives you the correct value. > > > please verify OK, I SAW IT IN BOOK, PP 465-66, BUT IT DOES NOT GIVE A FORMULA, AND THIS CRAP IS NOT IN SECRET SAUCE EITHER

lets hope it aint on the exam boys and girls!

LOUD NOISES!!! getterdone Wrote: ------------------------------------------------------- > ahhh then you minus 1 and minus alpha I take it? > that gives you the correct value. > > > please verify OK, I SAW IT IN BOOK, PP 465-66, BUT IT DOES NOT GIVE A FORMULA, AND THIS CRAP IS NOT IN SECRET SAUCE EITHER

I dont how to start to solve this exercise… if I get this one on the exam day if is one point less for me! WTF!!!

SO ARE WE SAYING P VALUE = STANDARD ERROR - 1 - ALPHA???

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