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.

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