- 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**

The level of significance is ______.

II. the magnitude of the sample size

III. symbolized by the Greek letter α

IV. level of confidence = 1 - (level of significance)

I. the probability of rejecting the null hypothesis when the null hypothesis is true

II. the magnitude of the sample size

III. symbolized by the Greek letter α

IV. level of confidence = 1 - (level of significance)

Correct Answer: I, III and IV

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**User Contributed Comments**
2

User |
Comment |
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azramirza |
The prob of rejecting the null hypothesis when the null hypothesis is is true is alpha. So if I stands true then III is true. |

HolzGe1 |
alpha = probability of Type I-error = level of significance. |