- CFA Exams
- CFA Exam: Level I 2021
- Study Session 3. Quantitative Methods (2)
- Reading 11. Hypothesis Testing
- Subject 7. The Relationship between Confidence Intervals and Tests of Significance

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**CFA Practice Question**

Consider the following statements about confidence intervals and tests of significance:

II. A test of significance is a test wherein we wish to ascertain whether or not the value of an unknown population parameter is as stated by an individual or institution.

III. If our confidence interval contains the value of the unknown population parameter as hypothesized under H

I. A confidence interval is a range of values within which we believe that a certain unknown population parameter will fall with a certain degree of confidence.

II. A test of significance is a test wherein we wish to ascertain whether or not the value of an unknown population parameter is as stated by an individual or institution.

III. If our confidence interval contains the value of the unknown population parameter as hypothesized under H

_{0}, then we would not reject H_{0}in a two-sided hypothesis test.Which statements are true?

Correct Answer: I, II and III

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**User Contributed Comments**
4

User |
Comment |
---|---|

wundac |
That's the lesson in a nutshell |

jayj001 |
statements successfully considered. next. |

LoveIvie |
Nice summary! |

ldfrench |
Borat say VERY NICE! |