P-value in Statistics
In statistics, if the null hypothesis is right, the p-value is the likelihood of achieving outcomes at least as extreme as the measured data of a statistical hypothesis test. The p-value can be used to offer the smallest level of significance at which the null hypothesis will be denied, as an equivalent to rejection points. A lower p-value means the proof in favor of the alternative hypothesis is greater.
By using p-value tables or spreadsheets/statistical applications, p-values are indeed frequently found. These figures are based on the presumed or documented spectrum of the likelihood of the testing of the particular statistic. Due to the probability distribution of the statistics, p-values are determined from the deviation between the observed value and the selected estimated values, with a larger variance between the two values leading to a lower p-value.
Arithmetically, for all performance parameters which are at least as far from the characteristic impedance as the significance level, the p-value is determined using the integral calculus of both the area under the probability distribution curve, in comparison to the entire area under the probability distribution curve. In short, the greater the difference between the two values measured, the less likely it is that the difference is due to mere random chance, and the lower p-value represents this.
When using measured likelihood, the p-value methodology to hypothesis testing decides whether there's any evidence to substantiate the null hypothesis. The original contention concerning a population is the null hypothesis, also known as the conjecture (or data generating process). If the population parameter varies from the value of the population parameter specified in the conjecture, the alternative hypothesis states.
In practice, in order to reject a null hypothesis, the statistical significance is described and evaluated to decide how small the p-value must be. Since various studies use varying degrees of importance when analyzing a problem, the findings of two different experiments can often be difficult for a reader to compare. A solution to this issue is given by P-values.
Let's suppose that means, for example in this case, that an approach that has explored returns from two identical assets was performed by various researchers using the same data but different levels of significance.