DEFINITION of 'Runs Test'
A statistical procedure that examines whether a string of data is occurring randomly given a specific distribution. The runs test analyzes the occurrence of similar events that are separated by events that are different.
INVESTOPEDIA EXPLAINS 'Runs Test'
For example, a list of truly random singledigit numbers should only have a few instances where a sequence of numbers is ascending numerically. However, in many cases, it is difficult to assert the randomness of data in which there are thousands of sequences in a string of data, so the runs test was created as an objective method of determining randomness.
The runs test model is important in determining whether an outcome of a trial is truly random, especially in cases where random versus sequential data has implications for subsequent theories and analysis.

Kurtosis
A statistical measure used to describe the distribution of observed ... 
Random Walk Theory
The theory that stock price changes have the same distribution ... 
Probability Distribution
A statistical function that describes all the possible values ... 
Normal Distribution
A probability distribution that plots all of its values in a ... 
Compound Annual Growth Rate  CAGR
The yearoveryear growth rate of an investment over a specified ... 
MeanVariance Analysis
The process of weighing risk against expected return. Mean variance ...

Mutual Funds & ETFs
5 Ways To Measure Mutual Fund Risk

Bonds & Fixed Income
Find The Highest Returns With The Sharpe ...

Personal Finance
What is the average salary for an accountant?

Fundamental Analysis
Lognormal and Normal Distribution