Statistical Significance

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Dictionary Says

Definition of 'Statistical Significance'

A result that is not likely to occur randomly, but rather is likely to be attributable to a specific cause. Statistical significance can be strong or weak, and is important to research in many math- and science-related fields, including medicine, sociology, psychology and biology. Statistical significance does not always indicate practical significance. In addition, it can be misinterpreted when researchers do not use language carefully in reporting their results.
Investopedia Says

Investopedia explains 'Statistical Significance'

The calculation of statistical significance (significance testing) is subject to a certain degree of error. The researcher must define in advance the probability of a sampling error (which exists in any test that does not include the entire population). Sample size is an important component of statistical significance in that larger samples are less prone to flukes. Only random, representative samples should be used in significance testing.

The level at which one can accept whether an event is statistically significant is known as the significance level or p-value.
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'Statistical Significance'

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    http://www.investopedia.com/exam-guide/cfa-level-1/quantitative-methods/test-statistics-interpreting-results.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; 2.7 Money Vs. Time-Weighted
    Return; 2.8 Calculating Yield; 2.9 Statistical Concepts And Market Returns; ...

  • CFA Level 1 Study Guide - Quantitative Methods - Hypothesis ...

    http://www.investopedia.com/exam-guide/cfa-level-1/quantitative-methods/hypothesis-testing.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; 2.7 Money Vs. Time-Weighted
    Return; 2.8 Calculating Yield; 2.9 Statistical Concepts And Market Returns; ...

  • Does Your Investment Manager Measure Up?

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    ... returns over time. The level of the R-squared coefficient confirms the
    statistical significance of alpha and beta. The capture ratios ...

  • Elliott Wave: Solving The Probability Problem | Investopedia

    http://www.investopedia.com/university/advancedwave/elliottwave4.asp
    ... In other words, the trader could now know the chances of a wave pattern and the
    resulting forecast with a low margin of error (statistical significance). ...

  • Technical Analysis Works In Forex Markets

    http://www.investopedia.com/articles/forex/11/technical-analysis-work-forex-markets.asp
    ... In this case, the performance of a test system may be valid within its testing data,
    but it wouldn't have any statistical significance in a wider population ...

  • What Is The Impact Of Research On Stock Prices?

    http://www.investopedia.com/articles/analyst/03/070903.asp
    ... After all that work, the results may not show statistical significance, which means
    that you would not have found any direct relationship between the movement ...

  • Forex Tutorial: Technical Analysis & TechnicaI Indicators ...

    http://www.investopedia.com/university/forexmarket/forex7.asp
    ... hour market, there tends to be a large amount of data that can be used to gauge
    future price activity, thereby increasing the statistical significance of the ...

  • CFA Level 1 Study Guide - Quantitative Methods - Regression ...

    http://www.investopedia.com/exam-guide/cfa-level-1/quantitative-methods/regression-analysis.asp
    ... 2.6 Net Present Value and the Internal Rate of Return; 2.7 Money Vs. Time-Weighted
    Return; 2.8 Calculating Yield; 2.9 Statistical Concepts And Market Returns; ...

  • How Commercials Impact Stock Prices

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    ... Obviously, this single observation is far from having statistical significance,
    but with further analysis, it might prove to be a helpful trading strategy. ...

  • Reduce Your Risk With ICAPM

    http://www.investopedia.com/articles/financial-theory/09/ICAPM-and-CAPM.asp
    ... are simply flukes in the data - after all, if you analyze enough data, you will
    find some results that get past the tests of statistical significance, even if ...

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