FRM 2026 Part I Quantitative Analysis Hypothesis Testing Free Quiz 2

Practice FRM 2026 Part I Quantitative Analysis MCQs from Hypothesis Testing. Get instant results with Explanation.

General10 MCQs

1. How can confidence intervals be used in hypothesis testing?

A. If a confidence interval does not contain the null value, we reject H0 at that significance levelB. Confidence intervals cannot be used for hypothesis testingC. A 95% confidence interval corresponds to α = 0.10D. The confidence interval must contain the null value to reject H0

2. What is the significance level?

A. Significance level is the probability of a Type II errorB. Significance level is always 0.05C. Significance level is the probability of correctly rejecting H0D. Significance level is the probability of a Type I error

3. What is a test statistic?

A. The test statistic is the same as the p-valueB. The test statistic is calculated from sample data and compared to critical valuesC. The test statistic is always positiveD. The test statistic is the confidence interval

4. What is a critical value in hypothesis testing?

A. The critical value is the same as the test statisticB. The critical value is the p-valueC. The critical value is the cutoff for the rejection regionD. The critical value is always 1.96

5. When is a paired t-test used?

A. Paired t-test is used for paired data, testing mean differenceB. Paired t-test is used for independent samplesC. Paired t-test is used for proportionsD. Paired t-test is used for variances

General10 MCQs

6. What is the Mann-Whitney U test?

A. Mann-Whitney U test is parametricB. Mann-Whitney U test is used for paired dataC. Mann-Whitney U test assumes normalityD. Mann-Whitney U test is a non-parametric test for two independent samples

7. What is the Wilcoxon signed-rank test?

A. Wilcoxon signed-rank test is used for independent samplesB. Wilcoxon signed-rank test is a non-parametric alternative to the paired t-testC. Wilcoxon signed-rank test assumes normalityD. Wilcoxon signed-rank test is used for proportions

8. What is the Kruskal-Wallis test?

A. Kruskal-Wallis test is used for two groupsB. Kruskal-Wallis test assumes normalityC. Kruskal-Wallis test is a non-parametric alternative to one-way ANOVAD. Kruskal-Wallis test is used for paired data

9. What does "fail to reject H0" mean?

A. Failing to reject H0 means there is insufficient evidence to reject it, not that H0 is trueB. Failing to reject H0 means H0 is definitely trueC. Failing to reject H0 means H0 is falseD. Failing to reject H0 means the test is inconclusive

10. What is the Bonferroni correction?

A. Bonferroni correction increases the significance levelB. Bonferroni correction is used for a single testC. Bonferroni correction is the same as the p-valueD. Bonferroni correction divides α by the number of tests to control Type I error

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