Page 43 - 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.292/294
Example: Paired comparisons test: Joe Andrews is examining changes in estimated betas for the
common stock of companies in the telecommunications industry before and after deregulation.
Andrews believes that the betas may decline because of deregulation since companies are no
longer subject to the uncertainties of rate regulation or that they may increase because there is
more uncertainty regarding competition in the industry. The sample information he gathered is
reported in the following figure:
Does deregulation have any impact on the betas of telecommunication companies?
