DEFINITION of 'PValue'
The level of marginal significance within a statistical hypothesis test, representing the probability of the occurrence of a given event. The pvalue is used as an alternative to rejection points to provide the smallest level of significance at which the null hypothesis would be rejected. The smaller the pvalue, the stronger the evidence is in favor of the alternative hypothesis.
Pvalues are calculated using pvalue tables, or spreadsheet/statistical software.
BREAKING DOWN 'PValue'
Because different researchers use different levels of significance when examining a question, a reader may sometimes have difficulty comparing results from two different tests.
For example, if two studies of returns from two particular assets were done using two different significance levels, a reader could not compare the probability of returns for the two assets easily. For ease of comparison, researchers will often feature the pvalue in the hypothesis test and allow the reader to interpret the statistical significance themselves. This is called a pvalue approach to hypothesis testing.

PTest
A statistical method used to test one or more hypotheses within ... 
TTest
A statistical examination of two population means. A twosample ... 
Bonferroni Test
A type of multiple comparison test used in statistical analysis. ... 
Statistics
A type of mathematical analysis involving the use of quantified ... 
Probability Distribution
A statistical function that describes all the possible values ... 
Binomial Distribution
A probability distribution that summarizes the likelihood that ...

Personal Finance
Does Your Investment Manager Measure Up?
These key stats will reveal whether your advisor is a league leader or a benchwarmer. 
Investing Basics
10 Books Worth Investing In
Here are 10 financial services books that are informative and useful. 
Mutual Funds & ETFs
5 Ways To Measure Mutual Fund Risk
These statistical measurements highlight how to mitigate risk and increase rewards. 
Bonds & Fixed Income
Find The Highest Returns With The Sharpe Ratio
Learn how to follow the efficient frontier to increase your chances of successful investing. 
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. 
Investing
Is it Time to “Buy” Inflation?
Based on recent data from the TreasuryInflation Protected Securities (TIPS) market, it would seem that most investors aren’t worried about inflation. 
Economics
How Do Companies Forecast Oil Prices?
Read about the different forecasting methods that businesses use to predict future crude oil prices, and why it's so difficult to guess correctly. 
Technical Indicators
Explaining Autocorrelation
Autocorrelation is the measure of an internal correlation with a given time series. 
Term
Public Goods & Free Riders
A public good is an item whose consumption is determined by society, not individual consumers.

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 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 >> 
What is the utility function and how is it calculated?
In economics, utility function is an important concept that measures preferences over a set of goods and services. Utility ... Read Full Answer >> 
What are some of the more common types of regressions investors can use?
The most common types of regression an investor can use are linear regressions and multiple linear regressions. Regressions ... Read Full Answer >> 
What types of assets lower portfolio variance?
Assets that have a negative correlation with each other reduce portfolio variance. Variance is one measure of the volatility ... Read Full Answer >> 
When is it better to use systematic over simple random sampling?
Under simple random sampling, a sample of items is chosen randomly from a population, and each item has an equal probability ... Read Full Answer >>