CFA Practice Question

There are 434 practice questions for this study session.

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.

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.
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