CFA 2026 Level I Quant Methods Hypothesis Testing Free Quiz 1

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CFA 2026 Level I Quant Methods Hypothesis Testing Free Quiz 1

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CFA 2026 Level I Quant Methods Hypothesis Testing Free Quiz 1

Practice CFA 2026 Level I Quant Methods MCQs from Hypothesis Testing. Get instant results with Explanation.

General5 MCQs

1. What is the null hypothesis?

A. The hypothesis that the researcher tests, typically representing the status quo.B. The hypothesis that the researcher wants to prove.C. The test statistic.D. The p-value.

2. What is the alternative hypothesis?

A. The null hypothesisB. The alternative hypothesisC. The test statisticD. The p-value

3. What is a Type I error?

A. Failing to reject the null hypothesis when it is false.B. Rejecting the null hypothesis when it is false.C. Rejecting the null hypothesis when it is true.D. Failing to reject the null hypothesis when it is true.

4. What is a Type II error?

A. Rejecting the null hypothesis when it is true.B. Rejecting the null hypothesis when it is false.C. Failing to reject the null hypothesis when it is true.D. Failing to reject the null hypothesis when it is false.

5. What is the significance level (α) in hypothesis testing?

A. The probability of making a Type I error.B. The probability of making a Type II error.C. The power of the test.D. The p-value.

General5 MCQs

6. What is the power of a test?

A. αB. 1 - βC. p-valueD. Test statistic

7. How is the test statistic calculated?

A. The p-valueB. The critical valueC. (Sample statistic - Hypothesized value) / Standard errorD. The confidence interval

8. What is the p-value?

A. The significance levelB. The test statisticC. The critical valueD. The smallest significance level at which the null hypothesis can be rejected

9. What is the decision rule for hypothesis testing based on the p-value?

A. p-value < αB. p-value > αC. p-value = αD. p-value < 0.01

10. What is the difference between a one-tailed and a two-tailed hypothesis test?

A. One-tailed tests have lower power than two-tailed tests.B. One-tailed tests have the entire α in one tail; two-tailed tests split α between both tails.C. Two-tailed tests have more power than one-tailed tests.D. There is no difference between one-tailed and two-tailed tests.

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