P-Values and Initial Prices

By Michael Gordon

The use of p-values and hypothesis testing is ubiquitous across science. Everyone remembers the rules they learnt in their first statistics courses; 0.05 is the magic cut-off for statistical significance. Statistical evidence with p-values below 0.05 are accepted – models with p-values higher than this threshold are discarded.   However, this statistical practice has come…

On the Topic of Statistical Power

By Michael Gordon

It’s really easy not to find any mind-changing evidence… just don’t go looking for it. Cassie Kozyrkov When testing hypotheses, there are two types of errors one can make: finding a relationship where one does not exist (false positive), and finding no relationship where one does exist (false negative). Statistical power measures how hard you…