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Basic Question 3 of 7

The reasoning for rejecting a null hypothesis is ______.

A. that a significant result usually occurs when the null hypothesis is false
B. that a significant result seldom occurs when the null hypothesis is true
C. both A and B

User Contributed Comments 3

User Comment
leo6fin in the other words probability that null hypothesis will occur needs to be high for it not to be rejected.
ashish100 the wording cannot get more confusing
dbedford Reject the null when something interesting is happening. The null hypothesis assumes nothing new or interesting is happening. That's whys it's null because the assumption is that nothing is going on
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

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® 2024 Level I Curriculum, Volume 1, Module 8.