Page 44 - FINAL CFA SLIDES DECEMBER 2018 DAY 4

Session Unit 3:

12. Hypothesis Testing

State the hypothesis:

We need 2TT: How do we know?

(betas can increase or decrease)

Select the appropriate test statistic:

Specify the level of significance: Let’s use a 5%!

Using the t-distribution, the 2TT t-values for a 5% SL with df = 38 (39 – 1) is ?
State the decision rule regarding the hypothesis.