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Medium · statistical_analysis · Quant Researcher interview question · hypothesis_testing, statistics, p_value, bonferroni
Testing multiple trading strategies simultaneously increases the probability of identifying false positives, a phenomenon known as the multiple comparisons problem. The Bonferroni correction addresses this by adjusting the significance level to control the Family-Wise Error Rate (FWER) across the set of hypotheses. This statistical rigor is essential in quantitative research to distinguish true alpha from random noise. Task Implement a function solution(strategy_returns, alpha) that evaluates t