Page 42 - FINAL CFA SLIDES DECEMBER 2018 DAY 4
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Session Unit 3:

                                                                                                 12. Hypothesis Testing

        LOS 12.i: Identify the appropriate test statistic and interpret the results for a hypothesis

        test concerning the mean difference of two normally distributed populations, p.292/293


          What if samples                e.g. you are trying to test equality of means of ABSA and FNB returns? Same sector!
          were dependent?



         The ‘’paired comparisons’ test (PCT) : pair the (differences) in returns over the same period!

                                                                                              For 1TT,













        For the PCT, the t-statistic with n – 1 df is:
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