- CFA Exams
- 2021 CFA Level I Exam
- Study Session 3. Quantitative Methods (2)
- Reading 11. Hypothesis Testing
- Subject 10. Hypothesis Tests Concerning Mean Differences (Paired Comparisons Test)
CFA Practice Question
In an effort to attract the local fishermen to their markets, two competing fish markets in opposite ends of New Bedford, Massachusetts, advertised that they had greater sales volume. Which of the following null hypotheses would show that there is no difference in sales volume between the two fish markets?
B. H0: (μ1 - μ2) ≠ 0
C. H0: μ1 < μ2
A. H0: (μ1 - μ2) = 0
B. H0: (μ1 - μ2) ≠ 0
C. H0: μ1 < μ2
Correct Answer: A
User Contributed Comments 2
| User | Comment |
|---|---|
| Teeto | If I state H0 as in A and do not reject it all I can say that there is no evidence that there is a difference. But I cannot say there is no difference. |
| 22Milito22 | Teeto, I agree with you. In my opinion the right answer should be B. Could someone please clarify? |