- CFA Exams
- CFA Exam: Level I 2021
- Study Session 3. Quantitative Methods (2)
- Reading 11. Hypothesis Testing
- Subject 12. Hypothesis Tests Concerning Differences between Variances

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**CFA Practice Question**

A small value for F will result in ______.

B. a rejection of H

C. the test statistic not falling in the acceptance region

A. a non-rejection of H

_{0}B. a rejection of H

_{0}C. the test statistic not falling in the acceptance region

Correct Answer: A

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**User Contributed Comments**
3

User |
Comment |
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DonAnd |
F-test checks whether or not the ratio of the test statistic s1^2/s2^2 is close to 1. If it is, DO NOT reject Ho; if it is not close to 1,reject Ho. |

johntan1979 |
For those who sometimes get confused like me, F refers to test value, not critical value. Small F value means it will be less than critical value = non-rejection of H0 |

Teeto |
If I get a small value like 0.01 then 1/F = 100 - way above 1 that means the null must be rejected. |