We are interested in testing ψ = 0 against an alternative in the presence of some nuisance parameter λ. The usual procedure for such problems is to use a test statistic that is a function of the data ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

P-values have taken quite a beating lately. These widely used and commonly misapplied statistics have been blamed for giving a veneer of legitimacy to dodgy study results, encouraging bad research ...

We present an importance sampling method for deciding, based on an observed random field, if a scan statistic provides significant evidence of increased activity in some localized region of time or ...