- CFA Exams
- CFA Exam: Level I 2021
- Study Session 3. Quantitative Methods (2)
- Reading 11. Hypothesis Testing
- Subject 3. Test Statistic and Significance Level

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**CFA Practice Question**

For the hypothesis test below, the test value is ______.

B. 1.93

C. -1.75

A. 1.75

B. 1.93

C. -1.75

Correct Answer: A

The test value for the test of proportions is shown below.

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**User Contributed Comments**
9

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

quincy |
why not use 0.78*(1-0.78)to compute the variance? |

bigzero |
because we have the hypothesis MU=p,so Sigma=p(1-p). then take square root. |

tenny45 |
where in the text is this equation shown? I thought i read the session but I don't remember seeing it... |

achu |
bigzero actually answered quincy's question well. |

StanleyMo |
test stastistic : = ( sample statistic - value of the population parameter under H0 ) / standard error of sample statistic |

czar |
oh wow!!! |

johntan1979 |
For alpha=.1, two-tailed 1.645, one-tailed, 1.282 |

sgossett86 |
the equation for variance is single bernoulli variable |

schweitzdm |
terrible question. if you see data in red circles on the real exam, you're in the wrong test center. no explanation of what is going on plus it is completely foreign to the study notes for this los. |