- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 8. Hypothesis Testing
- Subject 11. Tests Concerning the Equality of Two Variances (F-Test)
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. |