Explanation:
A result is statistically significant if it is unlikely to have happened by chance. The decision rule is to reject the null hypothesis if the p-value is less than the significance level. If the p-value is less than the significance level, then we conclude that the sample estimate is statistically different from the hypothesized value.
(Book 2, Module 18.3, LO 18.g)
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Question 36
An analyst is concerned that the trading strategy she recently identified has generated a statistically insignificant result and has asked for guidance in assessing the strategy. A result is statistically significant if it is:
A
unlikely to have occurred merely by chance, and the p-value is less than the significance level.
B
likely to have occurred merely by chance, and the p-value is less than the significance level.
C
unlikely to have occurred merely by chance, and the p-value is greater than the significance level.
D
likely to have occurred merely by chance, and the p-value is greater than the significance level.
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