Mr Karnani,
My 2 cents,in a sample population say cluster of closing Price of a Stock there is a Trend + Noise embedded in the Price.How do we know whether it has entered a Trending phase scientifically not subjectvely.Here enters Statistics,they use a Ztest on that sample data,there the basic premises is if the differences between the sample Mean and Population Mean is statistically Significant then we can conclude it is unlikely to have occurred by chance/randomly.
Finally, the z score is (the ztest results ) compared to a Z table, a table which contains the percent of area under the normal curve between the mean and the z score. Using this table will indicate whether the calculated z score is within the realm of CHANCE or if the z score is so different from the mean that the sample mean is unlikely to have happened by chance/RANDOMLY.
Now if you could make a Ztest on the Capabilities of Inditraders full time traders and find that when the National score is say 27 & Indi gives a result of 82 then you can conclude that the Trend is 100 % here.
Hope this explains.
Asish
