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

Question of the Week: Level 1 – Quantitative Methods

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    • MarkMeldrum
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      A hypothesis is:

      • an estimate of the value of a parameter.
      • an appropriate test statistic and its probability distribution.
      • a statement about the value of some effect size or parameter of one or more
        populations.
    • MarkMeldrum
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      The correct answer is Option C.

      A hypothesis is defined as a statement about the value of some effect size or parameter one or more populations.

      To test a hypothesis, one of the steps would be to identify an appropriate test statistic and its probability distribution (Option B is incorrect).

      The field of statistical inference has two subdivisions: estimation and hypothesis testing.  Estimation focuses on the likely value of a given parameter (Option A is incorrect).

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