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.
INVESTOPEDIA EXPLAINS '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. 
Trading Strategies
How do I build a profitable strategy when spotting a Rounding Top pattern?
Learn a simple stock trading strategy that is designed to profit from a bearish trend reversal following the formation of a rounding top pattern. 
Forex Strategies
How do I implement a forex strategy when spotting a Rounding Top Pattern?
Learn an aggressive forex trading strategy that can be implemented when a trader recognizes a rounding top pattern signaling a bearish trend reversal. 
Technical Indicators
How are Rounding Bottom patterns interpreted by analysts and traders?
Understand what a rounding bottom formation is and how it is most commonly interpreted and acted upon by traders and market analysts. 
Trading Strategies
How effective is creating trade entries after spotting a Rising Three Methods pattern?
Understand the basics of the rising three methods pattern and how this highly reliable pattern lends itself to the creation of effective trade strategy. 
Technical Indicators
How effective is creating trade entries after spotting a Rounding Top pattern?
Understand the characteristics of the rounding top pattern and how traders can obtain better trade entry points based on the rounding top formation.