- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 6. Hypothesis Testing
- Subject 12. Tests Concerning the Equality of Two Variances (F-Test)

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**CFA Practice Question**

The calculated F statistic of a two-tailed test is less than the test statistic. What conclusion will the researcher draw from this result?

B. The data does not provide sufficient evidence that there is a difference in the population variances.

C. The researcher is unable to draw any conclusions about the data from this test.

A. The data provides sufficient evidence that there is a difference in the population variances with 90% confidence.

B. The data does not provide sufficient evidence that there is a difference in the population variances.

C. The researcher is unable to draw any conclusions about the data from this test.

Correct Answer: B

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**User Contributed Comments**
5

User |
Comment |
---|---|

robkaz |
That is true for a 2-tailed test but not necessarily true for a 1-tailed test. |

surob |
I think it doesn't matter whether it is one tailed or 2 tailed. What matters here is that calculated F statistic is less than test statistic. |

tom1980 |
how about the null hypothesis you make ? |

TheHTrader |
Is the calculated F statistic = critical value (by looking up the table of f-distribution? I am a little confused here. |

jpducros |
For a F-Statistic, there is only a one-tail test possible, the right tail. |