- CFA Exams
- CFA Level I Exam
- Study Session 3. Quantitative Methods (2)
- Reading 11. Hypothesis Testing
- Subject 2. Null Hypothesis and Alternative Hypothesis

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**CFA Practice Question**

The 95% confidence interval for the sample mean is -4.56 to 3.27. The null hypothesis is that the sample mean is equal to zero. The alternative hypothesis is that the sample mean is not equal to zero (two-tailed test). The null hypothesis most appropriately should be ______.

A. accepted at a 5.0% level of significance

B. rejected at a 5.0% level of significance

C. rejected at a 2.5% level of significance

**Explanation:**The 95% confidence interval contains the value zero. Thus, the null hypothesis cannot be rejected.

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**User Contributed Comments**
2

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

gradyf |
I thought you should never "accept" the null hypothesis, only reject/fail to reject it? |

hanswerner |
I see it like gradfy, tests can be rejected or failed to rejected. |