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Basic Question 7 of 10
True or False? If False, correct the statement.
If we would reject a null hypothesis at the 5% level, we would also reject it at the 1% level.
User Contributed Comments 3
| User | Comment |
|---|---|
| johntan1979 | The opposite is true... if reject at 1%, we would also reject it at 5%. |
| samet1990 | Can somebody explain please? |
| mcbreatz | Has to do with the width of the interval we are examining. A 1% level is the same as 99% confidence interval. To have the value fall within a given interval 99% of the time we need a wider interval total. So if we reject at 99% we will reject at the lower width of 95% or (1-.95)=5% |
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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.