CFA Practice Question

There are 434 practice questions for this study session.

CFA Practice Question

A large value for F will result in ______.
A. a rejection of H0
B. an acceptance of H0
C. the test statistic falling in the acceptance region
Explanation: A large value for F will result in a rejection of H0.

User Contributed Comments 3

User Comment
mchu A F-test checks whether or not the ratio of the test statistic, (s1)2/(s2)2, is close to 1. If it is, you will obtain a non-rejection of H0; if not, a rejection of H0.
teje but is also depends on the significance level that you fact if you get a F statistic below 1, you should invert it, i.e. 1/f stat; be sure to also invert the degrees of freedom!
Shaan23 How is a big value of F always gonna cause a rejection of Ho. It depends on the critical value and the significance level you choose.

Unless they mean a HUGE number. I also didnt know if they meant the F value calculated as the test statistic or the F critical value. Without being specific you cant answer the question.
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