- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 5. Sampling and Estimation
- Subject 4. Point Estimates of the Population Mean
CFA Practice Question
For a 90% confidence interval, the alpha value is ______.
B. 10%
C. 5%
A. 90%
B. 10%
C. 5%
Correct Answer: B
A 90% confidence interval, x-bar - E < m < x-bar + E, has a alpha value of 1 - 90% = 10%. That is, P(x-bar - E < m < x-bar + E) = 1 - a.
User Contributed Comments 5
| User | Comment |
|---|---|
| mattg | Or 100%-90%=10% |
| DonAnd | i agree mattg...no need to complicate the situation |
| JakeZ | how can something so simple look so complex... |
| bidisha | Jake that's how finance professionals make money by complicating simple thing |
| maryprz14 | by making lies look like TRUTH :D |