- CFA Exams
- CFA Level I Exam
- Study Session 3. Quantitative Methods (2)
- Reading 11. Hypothesis Testing
- Subject 12. Hypothesis Tests Concerning Differences between Variances

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**CFA Practice Question**

A large value for F will result in ______.

A. a rejection of H

_{0}B. an acceptance of H

_{0}C. the test statistic falling in the acceptance region

**Explanation:**A large value for F will result in a rejection of H

_{0}.

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**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 choose...in 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. |