Page 6 - FINAL CFA I SLIDES JUNE 2019 DAY 4
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Session Unit 3:
12. Hypothesis Testing
LOS 12.b: Distinguish between two-tailed tests and one-tailed of hypotheses. .
Few questions…
Graphs are clear, but what makes these equations 2 v 1 TT?
What do +/-1.96 (2TT) and +1.65 (1TT) represent?
Why do we have Reject Ho
(& underneath the blue tails) on both diagrams?
Where do we get 1.96 and 1.645 (1TT) from?