- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 8. Hypothesis Testing
- Subject 6. The Decision Rule
CFA Practice Question
A doctor wants to prove that women under age 51 are getting less than the RDA of iron, 18 mg. The doctor randomly samples 43 women under age 51 and finds an intake of a sample mean of 17.9 mg of iron. Assume a population standard deviation of 0.8 and an a-level of 10%. If the doctor fails to reject the null hypothesis H0: μ > 18, the conclusion should be that ______
B. women under age 51 are getting more than the RDA (18 mg) of iron.
C. there is no evidence that women under age 51 are getting less than the RDA (18 mg) of iron.
A. there is no evidence that the mean is less than 18.
B. women under age 51 are getting more than the RDA (18 mg) of iron.
C. there is no evidence that women under age 51 are getting less than the RDA (18 mg) of iron.
Correct Answer: C
Failing to reject H0: μ > 18 means that there is no evidence that the statement μ > 18 is false. So, there is no evidence that the statement μ < 18 is true. In terms of this problem, this means that there is no evidence that women under age 51 are getting less than the RDA (18 mg) of iron.
User Contributed Comments 1
User | Comment |
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farhan92 | women and not enough iron.. little sexist o.O |