Page 9 - FINAL CFA I SLIDES JUNE 2019 DAY 4
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Session Unit 3:
12. Hypothesis Testing, p.279
LOS 12.c: Explain a test statistic, Type I and Type II errors, a significance level, and how
significance levels are used in hypothesis testing, p. 279
2 key statistics in hypothesis testing we just saw:
1. Test statistic calculated from the sample data
2. Critical value of the test statistic.
Recall the two ways of getting
to SE in the denominator of
the test statistic?
Test statistics itself is random variable
which can take 1 of 4 distributions: Not only Z!
T, CHI-SQUARE, AND F!
