- CFA Exams
- CFA Exam: Level I 2021
- Study Session 3. Quantitative Methods (2)
- Reading 11. Hypothesis Testing
- Subject 3. Test Statistic and Significance Level

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**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.

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**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. |