- CFA Exams
- CFA Level I Exam
- Study Session 3. Quantitative Methods (2)
- Reading 11. Hypothesis Testing
- Subject 8. Hypothesis Tests Concerning the Mean: T-Test vs. Z-Test

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**CFA Practice Question**

Suppose a t-test for the hypothesis that H(O): μ = 0 vs. H(A): μ ≠ 0 is carried out and we find t(obs.) = 1.8. The descriptive significance level of the test is ______.

A. the Type I error probability of the test

B. the probability of getting a t-value >= 1.8 or <= -1.8

C. the Type II error probability of the test

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**User Contributed Comments**
5

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

thecfaguy |
Can someone explain !?! |

Fernie |
you are not alone mate! lol |

geofin |
"the descriptive significance level of the test" is just another (extremely rarely used) name for the p-value of the test. |

Benn09 |
That's extremely annoying, I only saw "significance level" |

mmccoy |
arghhhh |