🎓CFA Final Prep All Topics

Deck 9 – Hypothesis Testing (LM8)

Card1 / 44
Question

What does the power of a hypothesis test measure?

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Answer

The probability of correctly rejecting a false null.

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Question

What does a p-value represent in a hypothesis test?

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Answer

The probability of results as extreme as observed under H0​.

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Question

In CFA quantitative methods, what is an F-test commonly used to compare?

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Answer

Two population variances.

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Question

When is a t-test statistic generally preferred for testing a population mean?

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Answer

When population variance is unknown, especially with small samples.

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