Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 0 of 4
For the hypothesis test below where the decision is fail to reject H0, a Type II error could have been committed. A correct discussion of the error would involve ______.
B. concluding that the population mean is 90 or less when in fact the population mean is less than 90.
C. going along with the population mean as 90 or less when in fact the population mean is greater than 90.
D. concluding that the population mean is 90 or more when in fact the population mean is less than 90.
A. going along with the population mean as more than 90 when in fact the population mean is 90 or less.
B. concluding that the population mean is 90 or less when in fact the population mean is less than 90.
C. going along with the population mean as 90 or less when in fact the population mean is greater than 90.
D. concluding that the population mean is 90 or more when in fact the population mean is less than 90.
User Contributed Comments 7
| User | Comment |
|---|---|
| Aimy | what is the difference between answer B and C? |
| Gina | wording: you can only draw a conclusion when you reject Ho. |
| xiong | type II - going along, Type I- conclude |
| fding | I think the difference is at "in fact", which means "truth" --- B = in fact u < 90 whereas C = in fact u > 90 |
| JKiro | Aimy: "...when a null hypothesis is not rejected, no conclusion is drawn..." --- hence with the type II error, the experimenter is "...going along..." |
| thekid | I agree with Jkiro's explanation. However, for this particular question: 'B' is DEFINITELY wrong aside from term 'concluding' because it says "...in fact the population mean is LESS than 90." which is not true. If it had stated "...in fact the population mean is GREATER than 90." Then the term 'concluding' would differentiate it from the correct answer 'C'. If someone could confirm, it would be appreciated. |
| johntan1979 | Yup, nothing to do with going along or concluding at all. Keywords are at the end of the sentences. |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
construct hypothesis tests and determine their statistical significance, the associated Type I and Type II errors, and power of the test given a significance level
CFA® 2025 Level I Curriculum, Volume 1, Module 8.