Hypothesis Testing Quant Interview Guide
Hypothesis testing quant interview guide for null hypotheses, alternatives, test statistics, p-values, power, and interpretation.
Candidates preparing for null hypotheses, test statistics, and interpretation.
Start with hypotheses
A hypothesis test needs a null hypothesis, an alternative, a test statistic, and assumptions about the data-generating process.
The test statistic needs context
A large statistic may be surprising under the null, but interpretation depends on variance, sample size, and whether assumptions hold.
Concrete example
Testing whether a mean is different from zero requires an estimate, standard error, and a rule for how unusual the observed statistic is under the null.
Discuss power and errors
Strong answers mention Type I error, Type II error, power, sample size, and practical significance when relevant to the decision being made.
Common mistakes
Candidates often run a mechanical test without stating the null or checking assumptions. The setup is part of the answer.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.