CFA Practice Question

There are 434 practice questions for this study session.

CFA Practice Question

For the hypothesis test shown below, the decision should be to ______.

A. reject Ha
B. reject H0
C. fail to reject H0
Explanation: Because the sample data, x-bar 16.8, has a z-score of -0.82 (the test value) and this z-score is not in the critical region (critical value is -2.33, the cutoff for the bottom 1% of the normal distribution), the decision is to fail to reject H0. That is, we believe this sample data came from a population whose mean is 17 or more. Note that the p-value for an x-bar of 16.8 is 0.2119 or about 21%.

User Contributed Comments 2

User Comment
dimanyc Your rejection region here is everything below the critical value. Since the test value is above it, you don't reject.
hannovanwyk - remember that this is a one tailed test, and that a test statistic greater than 0 would be problematic given that it's standardized.

i would say acceptance region -2.33<=x<=0
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