- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 6. Hypothesis Testing
- Subject 3. Test Statistic and Significance Level

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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.

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**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% |