Page 27 - FINAL CFA I SLIDES JUNE 2019 DAY 4
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Session Unit 3:
12. Hypothesis Testing
LOS 12.i: Identify the appropriate test statistic and interpret the results for a hypothesis
test concerning the mean difference of two normally distributed populations, p.292/293
What if samples
e.g. you are trying to test equality of means of ABSA and FNB returns? Same sector!
were dependent?
The ‘’paired comparisons’ test (PCT) : pair the (differences) in returns over the same period!
For 1TT,
For the PCT, the t-statistic with n – 1 df is:
