- CFA Exams
- CFA Level I Exam
- Study Session 3. Quantitative Methods (2)
- Reading 11. Hypothesis Testing
- Subject 12. Hypothesis Tests Concerning Differences between Variances
CFA Practice Question
If we are testing if the variances of two populations are equal, what should be the distribution of the underlying populations?
A. F-distribution
B. chi-square distribution
C. normal distribution
Explanation: The underlying populations should be normally distributed. All the statistical tests regarding population parameters assume normality of the population we are sampling from.
User Contributed Comments 10
| User | Comment |
|---|---|
| mbuechs2 | A should be correct, right? |
| hkcfa2 | No. The underlying populations should be normal. The ratio of F = s1^2/s2^2 follows a F-distribution. |
| danlan | All statistical tests suppose normality of the population. |
| boddunah | should pay attention .it's a clever question. |
| cfaeater | Trick question almost. |
| homersimpson | tricky indeed |
| zed888 | good question |
| acemaj | F test? Nah, F me. |
| acemaj | Good question though... |
| deathscyte | I think A will be correct if the question is appropriate test method. |