- CFA Exams
- CFA Exam: Level I 2021
- Study Session 3. Quantitative Methods (2)
- Reading 11. Hypothesis Testing
- Subject 11. Hypothesis Tests Concerning a Single Variance

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**CFA Practice Question**

Which of the following statements is incorrect?

B. Chi-square random variables can only be positive.

C. The chi-square distribution is defined by a single parameter.

A. The chi-square distribution is symmetrical just like the normal distribution.

B. Chi-square random variables can only be positive.

C. The chi-square distribution is defined by a single parameter.

Correct Answer: A

The statement that the chi-square distribution is symmetrical just like the normal distribution is incorrect. The chi-square distribution is not symmetrical; it is skewed. All other statements are correct.

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**User Contributed Comments**
4

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

surob |
Can someone explain the answer C? How is it correct? |

tabulator |
It is defined by its degrees of freedom only. Just like a t-distribution. |

bundy |
It is defined by the variance a single parameter |

praj24 |
Variance of a single, normally distributed population - Chi-sqaure equality of variance of two independent, normally distributed populations - F stat |