Page 52 - FINAL CFA SLIDES DECEMBER 2018 DAY 4
P. 52
Session Unit 3:
12. Hypothesis Testing
LOS 12.j: Identify the appropriate TS and interpret the results for a HT concerning 1) the variance of a
NDP, and 2) the equality of the variances of 2 NDPs based on 2 independent random samples, p299
Testing the Equality of the Variances of 2 NDPs, Based on 2 Independent Random Samples
– the F-distributed test statistic
The F-distribution is right-skewed (too) and is bounded by 0 on the LHS.
The shape is determined by 2 separate dfs, the numerator, df1, and the denominator, df2.
Lets recheck the Chi square one!
p. 348
