- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 8. Hypothesis Testing
- Subject 11. Tests Concerning the Equality of Two Variances (F-Test)
CFA Practice Question
A small value for F will result in ______.
B. a rejection of H0
C. the test statistic not falling in the acceptance region
A. a non-rejection of H0
B. a rejection of H0
C. the test statistic not falling in the acceptance region
Correct Answer: A
User Contributed Comments 3
| User | Comment |
|---|---|
| DonAnd | F-test checks whether or not the ratio of the test statistic s1^2/s2^2 is close to 1. If it is, DO NOT reject Ho; if it is not close to 1,reject Ho. |
| johntan1979 | For those who sometimes get confused like me, F refers to test value, not critical value. Small F value means it will be less than critical value = non-rejection of H0 |
| Teeto | If I get a small value like 0.01 then 1/F = 100 - way above 1 that means the null must be rejected. |