The power of a test is: A. the probability of correctly rejecting the null. B. the probability of accepting a false alternative. C. the probability of incorrectly rejecting the null.

The correct answer is Option A:Whereas the significance level of a test is the probability of incorrectly rejecting the null, the power of a test is the probability of correctly rejecting the null, that is, the probability of rejecting the null when it is false.

Thanks very much for all these questions. However, can we have questions on other topics? The previous weeks have focused on hypothesis testing, it would be good to get questions in other areas. Thanks again!!!

Question Of The Week: Level 1 - Quantitative Methods (3) - CFA Level 1

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This topic has 2 replies, 2 voices, and was last updated Apr-205:47 am by MarkMeldrum.

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- MarkMeldrum
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  30 Mar 2020 at 6:49 pm
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  The power of a test is:
  - A. the probability of correctly rejecting the null.
  - B. the probability of accepting a false alternative.
  - C. the probability of incorrectly rejecting the null.
- MarkMeldrum
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  - Undecided
  03 Apr 2020 at 5:47 am
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  The correct answer is Option A:
  
  Whereas the significance level of a test is the probability of incorrectly rejecting the null, the power of a test is the probability of correctly rejecting the null, that is, the probability of rejecting the null when it is false.
- barbtoksv
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  - CFA Level 1
  31 Mar 2020 at 1:03 pm
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  Thanks very much for all these questions. However, can we have questions on other topics? The previous weeks have focused on hypothesis testing, it would be good to get questions in other areas. Thanks again!!!
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