- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 8. Hypothesis Testing
- Subject 2. Null Hypothesis and Alternative Hypothesis
CFA Practice Question
Which of the following steps in hypothesis testing most likely follows collecting the data and calculating the test statistic?
A. stating the decision rule
B. specifying the significance level
C. making the statistical decision
Explanation: The seven steps in hypothesis testing are:
2) Identifying the appropriate test statistic and its probability distribution
3) Specifying the significance level
4) Stating the decision rule
5) Collecting the data and calculating the test statistic
6) Making the statistical decision
7) Making the economic or investment decision
1) Stating the hypothesis
2) Identifying the appropriate test statistic and its probability distribution
3) Specifying the significance level
4) Stating the decision rule
5) Collecting the data and calculating the test statistic
6) Making the statistical decision
7) Making the economic or investment decision
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