CFA CFA Level 1 CFA Level 1 Question of the Week – Quantitative Methods

CFA Level 1 Question of the Week – Quantitative Methods

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    • Avatar of Matt_AnalystPrepMatt_AnalystPrep
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        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.
      • Avatar of Matt_AnalystPrepMatt_AnalystPrep
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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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