CFA Practice Question

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CFA Practice Question

For a 90% confidence interval, the alpha value is ______.

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 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
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