- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 8. Hypothesis Testing
- Subject 3. Test Statistic and Significance Level
CFA Practice Question
True or False? If False, explain why.
Significance at the α = .001 level means that the null hypothesis is almost certainly false.
Correct Answer: True
If the results are significant at the .001 level, it is very unlikely (one-in-one-thousand chance) that the null hypothesis is true.
User Contributed Comments 2
| User | Comment |
|---|---|
| nichmax | Certain means 100% - The null is supposed to be False for the reason explained above |
| bantoo | Probability of making type-I error is very low.So. null hypothesis is certainly rejected. |