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 7 of 7
The meaning of "testing the hypothesis μ <= 6 versus μ > 6 at a 5% significance level" is ______
B. if the population mean μ is <= 6, the probability of deciding wrongly is at most 5%.
C. if the population mean μ is > 6, the probability of deciding wrongly is at most 5%.
A. if the population mean μ is > 6, the probability of deciding wrongly is at least 95%.
B. if the population mean μ is <= 6, the probability of deciding wrongly is at most 5%.
C. if the population mean μ is > 6, the probability of deciding wrongly is at most 5%.
User Contributed Comments 5
| User | Comment |
|---|---|
| dcfa | Type I Error=level of significance=probability of rejecting null hypothesis when it is true |
| bidisha | H0= u>6 , h1 = u<= 6 |
| Seancfa1 | Bidisha...? |
| enetis | u<=6 at 5% significance implies that prob u>6 is 95% |
| dbedford | We are basically saying "If we accept the research hypothesis that the population average is less than or equal to 6, then there is a 5% chance we'll be wrong |
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
explain hypothesis testing and its components, including statistical significance, Type I and Type II errors, and the power of a test
CFA® 2024 Level I Curriculum, Volume 1, Module 8.