- CFA Exams
- CFA Exam: Level I 2021
- Study Session 3. Quantitative Methods (2)
- Reading 11. Hypothesis Testing
- Subject 13. Parametric and Non-Parametric Tests

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**CFA Practice Question**

Which of the following is not a characteristic of parametric tests?

B. The parameter tested can be the variance of the sample.

C. The parameter tested can be the mean of the population.

D. The parameter tested can be the standard deviation of the population.

A. The population must follow a certain distribution.

B. The parameter tested can be the variance of the sample.

C. The parameter tested can be the mean of the population.

D. The parameter tested can be the standard deviation of the population.

Correct Answer: B

We test parameters which refer to the population, not the sample.

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**User Contributed Comments**
4

User |
Comment |
---|---|

thekapila |
good question..read it carefully!! |

chamad |
Remember: parameter for population and statistic for sample (p for p and s for s) |

praj24 |
POPULATION |

sshetty2 |
correct me if I'm wrong but why would you ever need to test for the variance of the sample? you collected the sample data and can just calculate it yourself... |