- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 5. Sampling and Estimation
- Subject 4. Point Estimates of the Population Mean

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**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.

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**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 |