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. ... 
Stochastic Modeling
A method of financial modeling in which one or more variables ... 
Coskewness
A statistical measure that calculates the symmetry of a variable's ... 
Cokurtosis
A statistical measure that calculates the degree of peak of a ...

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. 
Fundamental Analysis
What Causes Inflation in the United States
Inflation is the main catalyst behind U.S monetary policy. But what causes this phenomenon of sustained rising prices? Read on to find out. 
Term
What are Mutually Exclusive Events?
In statistics, mutually exclusive situations involve the occurrence of one event that does not influence or cause another event. 
Mutual Funds & ETFs
ETF Analysis: PowerShares DB Commodity Tracking
Find out about the PowerShares DB Commodity Tracking ETF, and explore a detailed analysis of the fund that tracks 14 distinct commodities using futures contracts. 
Mutual Funds & ETFs
ETF Analysis: PowerShares FTSE RAFI US 1000
Find out about the PowerShares FTSE RAFI U.S. 1000 ETF, and explore detailed analysis of the fund that invests in undervalued stocks.

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 >> 
What are some common financial sampling methods?
There are two areas in finance where sampling is very important: hypothesis testing and auditing. The type of sampling methods ... Read Full Answer >>