CFA Practice Question

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CFA Practice Question

The reasoning for rejecting a null hypothesis is ______.

A. that a significant result usually occurs when the null hypothesis is false
B. that a significant result seldom occurs when the null hypothesis is true
C. both A and B
Correct Answer: C

User Contributed Comments 3

User Comment
leo6fin in the other words probability that null hypothesis will occur needs to be high for it not to be rejected.
ashish100 the wording cannot get more confusing
dbedford Reject the null when something interesting is happening. The null hypothesis assumes nothing new or interesting is happening. That's whys it's null because the assumption is that nothing is going on
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