Page 61 - FINAL CFA SLIDES DECEMBER 2018 DAY 4
P. 61
Session Unit 3:
Use the following data to answer 12. Hypothesis Testing (A/A/B/A)
Questions 15 through 18.
Two samples were drawn from two normally distributed populations. For the first sample, the mean was $50 and the standard
deviation was $5. For the second sample, the mean was $55 and the standard deviation was $6. The first sample consists of 25
observations and the second sample consists of 36 observations. (Note: In the questions below, the subscripts “1” and “2”
indicate the first and second sample, respectively.)
A. Go 2TT (t): Reject Ho if t is outside the range defined by ±t at α = 0.01 with df = 24
±t24 at α = 0.01 = ±2.797
A. Go Chi! Reject Ho if χ2 > the critical chi-square value at α = 0.05 with df = 24.
The right-tail critical chi-square value is 36.415. Since χ2 = 25 ≤ 36.415
B. Go 1TT (t): Reject Ho if the computed t-statistic > t-critical at α = 0.05 with df = 24.
t-critical = t24 = 1.711. Since t > t-critical
A. Go F!. Reject Ho if F > critical F-value at α / 2.
At a 0.025 SL with d1 = 24 and d2 = 35, F-critical = 2.18.
Since F < F-critical (1.44 < 2.18), we fail to reject the null hypothesis.
