Page 29 - FINAL CFA I SLIDES JUNE 2019 DAY 4
P. 29

Session Unit 3:

                                                                                                        12. Hypothesis Testing

















      State the hypothesis:


      We need 2TT: How do we know?




      (betas can increase or decrease)





      Select the appropriate test statistic:




      Specify the level of significance:                                           Let’s use a 5%!



      State the decision rule regarding the hypothesis.
       Using the t-distribution, the 2TT t-values for a 5% SL with df = 38 (39 – 1) is ?
   24   25   26   27   28   29   30   31   32   33   34