What to know
Identify the rule, formula, or decision criterion before reading the answer choices. CFA Level I distractors often use the right vocabulary with the wrong condition.
Quantitative Methods
Hypothesis Testing practice questions
Hypothesis Testing is part of CFA Level I Quantitative Methods. Quantitative Methods questions emphasize time value of money, probability, sampling, hypothesis testing, regression, and return statistics. Use this page to review the controlling ideas, then work through 7 questions with answer explanations and common traps.
Review the worked explanations before moving into adaptive practice. The app version can mix this topic with due reviews and weak related concepts.
Practice this topicHow to practice
Work each item under time pressure, then compare your reasoning with the step-by-step explanation and key takeaway.
Review signal
Missed questions should become scheduled reviews when the error comes from a concept gap, formula setup, or answer-choice trap.
Quantitative Methods
Hypothesis Testing
At a 5% significance level, a test produces p-value of 0.03. The appropriate decision is to:
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Hypothesis Testing
An analyst tests whether a portfolio mean return differs from zero in either direction. The most appropriate alternative hypothesis is:
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Hypothesis Testing
A sample mean is 5.4, the hypothesized mean is 4.8, sample standard deviation is 1.8, and sample size is 36. The test statistic is closest to:
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Hypothesis Testing
Holding the significance level fixed, a lower Type II error probability implies:
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Hypothesis Testing
An investment strategy has mean excess return that is statistically significant at the 1% level, but the estimated excess return is 0.02% per year before transaction costs. The most accurate conclusion is that the result is:
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Hypothesis Testing
A test of H0: mean return \<= 1.0% versus H1: mean return \> 1.0% uses sample mean 1.4%, sample standard deviation 1.8%, and n = 81. The test statistic is closest to:
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Hypothesis Testing
For highly non-normal paired before-and-after performance rankings in a small sample, the most appropriate test type is likely:
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