- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 8. Hypothesis Testing
- Subject 3. Test Statistic and Significance Level

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**CFA Practice Question**

In hypothesis testing, what is the function of a critical value that is taken from the tables?

B. It is the point where the decision changes from reject to fail to reject.

C. It is the center of the distribution of X's.

A. It is equal to the calculated statistic from the observed data.

B. It is the point where the decision changes from reject to fail to reject.

C. It is the center of the distribution of X's.

Correct Answer: B

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