Page 38 - FINAL CFA I SLIDES JUNE 2019 DAY 4
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Session Unit 3:
12. Hypothesis Testing
LOS 12.j: : Identify the appropriate TS and interpret the results for a HT concerning 1) the variance of a
NDP, and 2) the equality of the variances of 2 NDPs based on 2 independent random samples, p300
2TT (F) 1TT (F)
F equals 1 when variances are equal; Always put the larger variance in the numerator..
Note that n1 – 1 and n2 – 1 are the dfs used to identify the appropriate critical value from the F-table