Test statistic

The concept of test statistic is found in the theory of hypothesis testing. In a test of hypothesis, the test statistic is a function of the sample data and its value is used to decide whether or not to reject the null hypothesis. If the test statistic falls within a critical region, fixed ex-ante, then the null hypothesis is rejected.

Go to the lecture entitled Hypothesis testing for a rigorous definition of the concept of test statistic.

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