- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 8. Hypothesis Testing
- Subject 6. The Decision Rule
CFA Practice Question
Consider the following statements about confidence intervals and tests of significance:
II. A test of significance is a test wherein we wish to ascertain whether or not the value of an unknown population parameter is as stated by an individual or institution.
III. If our confidence interval contains the value of the unknown population parameter as hypothesized under H0, then we would not reject H0 in a two-sided hypothesis test.
I. A confidence interval is a range of values within which we believe that a certain unknown population parameter will fall with a certain degree of confidence.
II. A test of significance is a test wherein we wish to ascertain whether or not the value of an unknown population parameter is as stated by an individual or institution.
III. If our confidence interval contains the value of the unknown population parameter as hypothesized under H0, then we would not reject H0 in a two-sided hypothesis test.
Which statements are true?
Correct Answer: I, II and III
User Contributed Comments 4
| User | Comment |
|---|---|
| wundac | That's the lesson in a nutshell |
| jayj001 | statements successfully considered. next. |
| LoveIvie | Nice summary! |
| ldfrench | Borat say VERY NICE! |