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Basic Question 3 of 8
The Santa Rosa Homeowners are trying to prove that the homes in their area are less than 5 miles from the nearest fire station. The data and hypothesis test is shown below. The conclusion should be that ______
B. the homes in the Santa Rosa area are, on average, less than 5 miles from the nearest fire station.
C. the homes in the Santa Rosa area are, on average, 5 miles or more from the nearest fire station.
A. there is no evidence that the homes in the Santa Rosa area are, on average, 5 miles or more from the nearest fire station.
B. the homes in the Santa Rosa area are, on average, less than 5 miles from the nearest fire station.
C. the homes in the Santa Rosa area are, on average, 5 miles or more from the nearest fire station.
User Contributed Comments 2
| User | Comment |
|---|---|
| johans | What is wrong with A? |
| rufi | if we reject H0, mean we have evidence that it is less than 5 miles |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
construct hypothesis tests and determine their statistical significance, the associated Type I and Type II errors, and power of the test given a significance level
CFA® 2025 Level I Curriculum, Volume 1, Module 8.