Alternative Hypothesis

The hypothesis against which the null hypothesis is tested.

Similar financial terms

Alternative mortgage instruments
Variations of mortgage instruments such as adjustable-rate and variablerate mortgages, graduated-payment mortgages, reverse-annuity mortgages, and several seldom-used variations.

Null hypothesis
In classical hypothesis testing, we take the null hypothesis as true and require the data to provide substantial evidence against it.

Overreaction hypothesis
The supposition that investors overreact to unanticipated news, resulting in exaggerated movement in stock prices followed by corrections.

Liquidity preference hypothesis
The argument that greater liquidity is valuable, all else equal. Also, the theory that the forward rate exceeds expected future interest rates.

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Z score

The Z score (also called Zeta) is a statistical measure developed by Professor Edward Altman of New York University. The statistic quantifies the distance (measured in standard deviations) from a data point to the mean of a data set.

A company's Z score is a positive function of the following five factors:
(net working capital) / (total assets) (retained earnings) / (total assets) ( ...


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