Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 3 of 8
For the hypothesis test below, where the decision is whether to reject H0, then a ______ error could have occurred.
B. alpha
C. Type II
A. Type I
B. alpha
C. Type II
User Contributed Comments 3
| User | Comment |
|---|---|
| euniceyew | how to know is type 1? any calculation required? can anyone explain further? |
| SuperKnight | You know its type 1 because a decision to reject the null hypothesis has been made, the other (Type II error) occurs when you fail to reject the null hypothesis. Either decision, rejecting or failing to reject the null hypothesis will always leave you open to one of the errors. |
| bhaynes | If we ever reject the Null, then there is a possible Type I error. Not rejecting = possible Type II error |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
explain hypothesis testing and its components, including statistical significance, Type I and Type II errors, and the power of a test
CFA® 2025 Level I Curriculum, Volume 1, Module 8.