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

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**CFA Practice Question**

A researcher wants to know whether the number of teenagers who started smoking this year is less than or greater than those who started last year. What type of test should be performed?

B. two-tailed test

C. alternative hypothesis

A. one-tailed test

B. two-tailed test

C. alternative hypothesis

Correct Answer: B

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**User Contributed Comments**
5

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

DonAnd |
is this the case of when ambiguous use the two-tailed test? |

johntan1979 |
It's not ambiguous since the question did say "less than or greater than". |

gill15 |
thats hilarious...along with that though....if I didnt do these questions as easy as they are....I would`ve got them wrong on the exam. |

Alicesweetlamb |
'less than or greater than' meaning 'not equal to', so it is two tail test. |

Rachelle3 |
but if it is less than the mean it would be 1 tailed test. I am guessing "or" hints that is 2 tailed. Thanks aliceweetlamb. |