Which of the Following Best Describes a P-Value

question 31

Multiple Choice

Which of the following best describes a p-value?

• A) A p-value is the probability of getting our population results or more extreme if the null hypothesis about the sample statistic were really true
• B) A p-value is the probability of getting our sample results or more extreme if the null hypothesis about the population parameter were really true
• C) A p-value is the probability of getting our sample results.
• D) A p-value is the probability of getting our sample results or more extreme if the null hypothesis about the population parameter were really false

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Definitions:

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, often noted in years.

Yield Spread

The difference between the yields of two bonds with differing credit qualities, maturities, or issuers.

Historical Levels

Refers to the past recorded levels or values of a financial metric, interest rate, stock price, or any other economic indicator.

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 1/100th of a percent.