- CFA Exams
- CFA Exam: Level I 2021
- Study Session 3. Quantitative Methods (2)
- Reading 11. Hypothesis Testing
- Subject 2. Null Hypothesis and Alternative Hypothesis

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**CFA Practice Question**

What value does the null hypothesis make a claim about?

B. sample mean

C. sample statistic

A. population parameter

B. sample mean

C. sample statistic

Correct Answer: A

The null hypothesis makes claims regarding the values that the population parameter may take.

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**User Contributed Comments**
4

User |
Comment |
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dipu617 |
Could anyone please clarify? Thank you. |

robertucla |
It's in the first sentence in def dipu617 |

dbedford |
The null hypothesis Ho is represented by the tail(s) of the population's normal distribution and we want to reject the idea that the unknown parameter typically the mean is in the tail(s) and not toward the center |

jgoff508 |
Dipu617, Boston area? Someone please correct me if I'm wrong but, think of if this way. The null is making a claim about an entire group. The alternative is suggesting that the null isn't accurate, and make it's own claim. |