Page 11 - FINAL CFA I SLIDES JUNE 2019 DAY 4
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Session Unit 3:
12. Hypothesis Testing
LOS 12.d: Explain a decision rule, the power of a test, and the relation between
confidence intervals and hypothesis tests, p. 281
The decision for a hypothesis test is to either reject the null hypothesis or fail to reject.
A decision rule is specific and quantitative.
e.g. if the test statistic is (greater, less than)
the value X, reject the null.
