Sample statistic is p ˆ p ˆ .41 1 2 .38 .03 Five steps to hypothesis testing for difference in 2 proportions: See Summary Box on page 479 STEP 1: Determine the null and alternative hypotheses. Null hypothesis is H0: p1 – p2 = 0 (or p1 = p2); null value = 0, Statistics are computed from data Working definition. A statistic is anything that can be computed from random data and known values. statistic cannot depend on the true value of an unknown parameter. statistic can depend on a hypothesized value of a parameter., Abstract This study examines the information content of quarterly earnings announce-ments, measured as the magnitude of stock price revision at earnings announcements relative to price revision at other times. We investigate whether quarterly earnings announcements are informative using a nonparametric approach and 1971–2011 sam-ple period. The findings affirm prior evidence on earlier , Chi-square goodness of fit statistic: From Table A .5 (page 732) gives areas to the right of the chi-square value, because that’s the p-value in this situation.:, Statistics and Parameters statistic is a numerical value computed from a sample. Its value may differ for different samples. e.g. sample mean x , sample standard deviation s, and sample proportion pˆ . parameter is a numerical value associated with population. Considered fixed and unchanging., .