CFA Practice Question

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CFA Practice Question

A small value for F will result in ______.

A. a non-rejection of H0
B. a rejection of H0
C. the test statistic not falling in the acceptance region
Correct Answer: A

User Contributed Comments 3

User Comment
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.
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