A two-tailed hypothesis test at the 95% significance level has a p-value of 2.14%. This most likely means that: A. at a 3% significance level, we cannot reject the null hypothesis. B. at a 2% significance level, we can reject the null hypothesis. C. at a 3% significance level, we can reject the null hypothesis.

The correct answer is C.The p-value is the smallest level of significance for which the null hypothesis can be rejected. At 2.14% and any level above 2.14%, the null hypothesis can be rejected.

CFA Level 1 Question Of The Week - Quantitative Methods (2) - CFA Level 1

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  14 Nov 2019 at 6:28 pm
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  The correct answer is C.
  
  The p-value is the smallest level of significance for which the null hypothesis can be rejected. At 2.14% and any level above 2.14%, the null hypothesis can be rejected.
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