Page 6 - FINAL CFA I SLIDES JUNE 2019 DAY 4
P. 6
Session Unit 3:
12. Hypothesis Testing
LOS 12.b: Distinguish between one-tailed and two-tailed tests of hypotheses. .
2-Tailed Test, p276 1-Tailed Test, p.278
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?
