- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 8. Hypothesis Testing
- Subject 6. The Decision Rule
CFA Practice Question
The null hypothesis is most appropriately rejected when the p-value is ______.
A. negative
B. close to zero
C. close to one
Explanation: The p-value is the smallest level of significance at which the null hypothesis can be rejected. The smaller the p-value, the stronger the evidence against accepting the null hypothesis, P-values close to zero strongly suggest that the null hypothesis should be rejected.
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