- CFA Exams
- CFA Level I Exam
- Study Session 3. Quantitative Methods (2)
- Reading 11. Hypothesis Testing
- Subject 12. Hypothesis Tests Concerning Differences between Variances

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**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.

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**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. |