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Basic Question 0 of 3
For the hypothesis test below where the decision is fail to reject H0, a Type II error could have been committed. A correct discussion of the error would involve ______.
B. concluding that the population mean is 90 or less when in fact the population mean is less than 90.
C. going along with the population mean as 90 or less when in fact the population mean is greater than 90.
D. concluding that the population mean is 90 or more when in fact the population mean is less than 90.
A. going along with the population mean as more than 90 when in fact the population mean is 90 or less.
B. concluding that the population mean is 90 or less when in fact the population mean is less than 90.
C. going along with the population mean as 90 or less when in fact the population mean is greater than 90.
D. concluding that the population mean is 90 or more when in fact the population mean is less than 90.
User Contributed Comments 7
| User | Comment |
|---|---|
| Aimy | what is the difference between answer B and C? |
| Gina | wording: you can only draw a conclusion when you reject Ho. |
| xiong | type II - going along, Type I- conclude |
| fding | I think the difference is at "in fact", which means "truth" --- B = in fact u < 90 whereas C = in fact u > 90 |
| JKiro | Aimy: "...when a null hypothesis is not rejected, no conclusion is drawn..." --- hence with the type II error, the experimenter is "...going along..." |
| thekid | I agree with Jkiro's explanation. However, for this particular question: 'B' is DEFINITELY wrong aside from term 'concluding' because it says "...in fact the population mean is LESS than 90." which is not true. If it had stated "...in fact the population mean is GREATER than 90." Then the term 'concluding' would differentiate it from the correct answer 'C'. If someone could confirm, it would be appreciated. |
| johntan1979 | Yup, nothing to do with going along or concluding at all. Keywords are at the end of the sentences. |
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Learning Outcome Statements
describe how behavioral biases of investors can lead to market characteristics that may not be explained by traditional finance
CFA® 2025 Level I Curriculum, Volume 6, Module 5.