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 8 of 9

A researcher wants to know whether the number of teenagers who started smoking this year is less than or greater than those who started last year. What type of test should be performed?

A. one-tailed test
B. two-tailed test
C. alternative hypothesis

User Contributed Comments 5

User Comment
DonAnd is this the case of when ambiguous use the two-tailed test?
johntan1979 It's not ambiguous since the question did say "less than or greater than".
gill15 thats hilarious...along with that though....if I didnt do these questions as easy as they are....I would`ve got them wrong on the exam.
Alicesweetlamb 'less than or greater than' meaning 'not equal to', so it is two tail test.
Rachelle3 but if it is less than the mean it would be 1 tailed test. I am guessing "or" hints that is 2 tailed. Thanks aliceweetlamb.
You need to log in first to add your comment.
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

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.