- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 8. Hypothesis Testing
- Subject 2. Null Hypothesis and Alternative Hypothesis
CFA Practice Question
In 2007, the DEA found that 12% of teenagers (13-19 years) used illegal drugs. In 2011, to check to see if there was a change in usage, a stduy of 1000 randomly selected teens produced 100 teens who used illegal drugs. For this study, the null hypothesis, Ho, is ______.
A. H0: p < 0.12
B. H0: p > 0.12
C. H0: p = 0.12
Explanation: Because the DEA is interested in a change the test is not directional; it is a two-tailed test. The null hypothesis should be H0: p = 0.12.
User Contributed Comments 1
| User | Comment |
|---|---|
| achu | Read question, WITHOUT personal bias!!! :( Quesion only asks for change, not improvement! |