The ASA (American Statistical Association) has just released a statement about the misuse of $p$-value. Will this action have much effect on the use of $p$-value in finance?
The use of $p$-value in finance after the recent statement of ASA (American Statistical Association)
$\begingroup$
$\endgroup$
1
-
$\begingroup$ I can't believe it took the ASA this long to publicize this error. In finance, "past performance does not imply future performance" partially covers this as do all the other caveats about simulated or hypothetical trading. $\endgroup$ – user59 Mar 9 '16 at 2:56
Add a comment
|
$\begingroup$
$\endgroup$
Deidre McCloskey has been going on about this for as long as I can remember. See for example the aptly titled : "The cult of statistical significance: How the standard error costs us jobs, justice and lives" http://www.press.umich.edu/script/press/186351
She has raised awareness of the issue in economics and financial economics, but obviously there is a long lag.
In finance practitioners are a motley bunch, with mixed backgrounds. Most are poor statisticians to begin with; then they are asked to compile management information in RAG, where they have to show that they know what they are talking about.
