CFA Practice Question

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CFA Practice Question

True or False? If False, correct the statement.

If we would reject a null hypothesis at the 5% level, we would also reject it at the 1% level.
Correct Answer: False

A result may be significant at the 5% level but not at the 1% level.

User Contributed Comments 3

User Comment
johntan1979 The opposite is true... if reject at 1%, we would also reject it at 5%.
samet1990 Can somebody explain please?
mcbreatz Has to do with the width of the interval we are examining. A 1% level is the same as 99% confidence interval. To have the value fall within a given interval 99% of the time we need a wider interval total. So if we reject at 99% we will reject at the lower width of 95% or (1-.95)=5%
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