DEFINITION of 'PTest'
A statistical method used to test one or more hypotheses within a population or a proportion within a population. When testing a hypothesis about a population proportion (p) within a large population (one in which the sample size, "n", is not greater than 5% of the overall population), the formula is:
x = (m/nP) / SqRt[P(1P)/n]
m= "yes" response
n = random sample size
p = proportion
P = population
This formula is used to test three hypotheses:
 p ≤ P
 p ≥ P
 p = P
The ptest statistic typically follows a standard normal distribution when large sample sizes are used, and researchers use Ztests to determine whether a hypothesis passes based on a specific significance level will be rejected. The larger the pvalue in the ptest, the more likely the hypothesis is true.
BREAKING DOWN 'PTest'
For example, a polling group contacted a group of investors and asked if they felt that the economy would fall into a recession. Of the 1000 people contacted, 700 said that they thought that the economy was heading toward recession. The researchers then applied the PTest to determine if p ≤ 0.60, p ≥ 0.60, or p = 0.60; basically, what percentage of the population believe that the economy will fall into a recession.

TTest
A statistical examination of two population means. A twosample ... 
Representative Sample
A subset of a statistical population that accurately reflects ... 
ZTest
A statistical test used to determine whether two population means ... 
Statistical Significance
A result that is not likely to occur randomly, but rather is ... 
Probability Distribution
A statistical function that describes all the possible values ... 
Statistically Significant
The likelihood that a result or relationship is caused by something ...

Investing Basics
Economic Indicators That DoItYourself Investors Should Know
Understanding these investing tools will put the market in your hands. 
Fundamental Analysis
Find The Right Fit With Probability Distributions
Discover a few of the most popular probability distributions and how to calculate them. 
Forex Education
Trading With Gaussian Models Of Statistics
The entire study of statistics originated from Gauss and allowed us to understand markets, prices and probabilities, among other applications. 
Active Trading Fundamentals
Bet Smarter With The Monte Carlo Simulation
This technique can reduce uncertainty in estimating future outcomes. 
Fundamental Analysis
Scenario Analysis Provides Glimpse Of Portfolio Potential
This statistical method estimates how far a stock might fall in a worstcase scenario. 
Chart Advisor
ChartAdvisor for November 27 2015
Weekly technical summary of the major U.S. indexes. 
Chart Advisor
Pay Attention To These Stock Patterns Playing Out
The stocks are all moving different types of patterns. A breakout could signal a major price move in the trending direction, or it could reverse the trend. 
Chart Advisor
Now Could Be The Time To Buy IPOs
There has been lots of hype around the IPO market lately. We'll take a look at whether now is the time to buy. 
Chart Advisor
Copper Continues Its Descent
Copper prices have been under pressure lately and based on these charts it doesn't seem that it will reverse any time soon. 
Technical Indicators
Using Pivot Points For Predictions
Learn one of the most common methods of finding support and resistance levels.

Is Colombia an emerging market economy?
Colombia meets the criteria of an emerging market economy. The South American country has a much lower gross domestic product, ... Read Full Answer >> 
What are some of the most common technical indicators that back up Doji patterns?
The doji candlestick is important enough that Steve Nison devotes an entire chapter to it in his definitive work on candlestick ... Read Full Answer >> 
Tame Panic Selling with the Exhausted Selling Model
The exhausted selling model is a pricing strategy used to identify and trade based off of the price floor of a security. ... Read Full Answer >> 
Point and Figure Charting Using Count Analysis
Count analysis is a means of interpreting point and figure charts to measure vertical price movements. Technical analysts ... Read Full Answer >> 
What assumptions are made when conducting a ttest?
The common assumptions made when doing a ttest include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >> 
How are double exponential moving averages applied in technical analysis?
Double exponential moving averages (DEMAS) are commonly used in technical analysis like any other moving average indicator ... Read Full Answer >>