Quants

anbu.edu
Finance Junkie
Posts: 205
Joined: Mon Feb 04, 2013 3:35 pm

Quants

Postby anbu.edu » Sun Oct 06, 2013 11:14 pm

Which of the following statements regarding hypothesis testing is/are true?
I.If the significance level is more than the p-value, the null hypothesis is rejected
II.A decrease in the level of type I error causes a decrease in Type II error as well
III.Type I error is the error when a false null hypothesis is not rejected
IV.Systematic error is caused by non-random variations due to unknown sources
Choose one answer.
a. A. I only Incorrect
b. B. I and IV Correct
c. C. I and III Incorrect
d. D. I, II and IV Incorrect

Can you please explain about the D option

pradeeppdy
Finance Junkie
Posts: 258
Joined: Thu Sep 20, 2012 3:42 pm

Quants

Postby pradeeppdy » Mon Oct 07, 2013 7:49 am

Hi Anubu,

1- The P- value is smallest level of significance, So it cannot be more than this.
2- Both errors are independent, Means if 1 is decreasing it will not effect on others(decreasing or increasing probability).
3- It is Type II error
4- I think it is known sources
Last edited by pradeeppdy on Tue Oct 08, 2013 5:30 am, edited 1 time in total.

anbu.edu
Finance Junkie
Posts: 205
Joined: Mon Feb 04, 2013 3:35 pm

Postby anbu.edu » Mon Oct 07, 2013 11:51 am

The answer is B.. Thats why i need explanation for IV option


Return to “CFA Level I”



Disclaimer

Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to abuse@edupristine.com and we will rectify it.