# Hypothesis Test

*Math & Statistics — Finicade finance glossary*

A procedure for deciding whether data supports a claim — comparing what you observed against what pure chance would produce. Risk teams use it to check whether a model breaches 'too often' to be luck.

**Also known as:** hypothesis testing, test-statistic, kupiec-test

**Related terms:** [P-Value](https://finicade.com/glossary/p-value), [Backtesting](https://finicade.com/glossary/backtesting), [Confidence Level](https://finicade.com/glossary/confidence-level)

**Taught in:** Charter Climb — Hypothesis Testing, Step by Step

Source: https://finicade.com/glossary/hypothesis-test