Level I CFA Quant: Hypothesis Testing-Lecture 3

[@IFT-CFA]

How much practice do I need to do? The Magic Number of questions to do to Pass Level I exam is…...read on here: ift.world/the-magic-number/

[@juliojustice3100]

you all prolly dont give a damn but does any of you know of a method to get back into an Instagram account..? I somehow lost the login password. I love any tips you can give me.

[@nolandrake4261]

@Julio Justice instablaster :)

[@juliojustice3100]

@Nolan Drake Thanks so much for your reply. I got to the site through google and Im waiting for the hacking stuff now. Takes quite some time so I will reply here later when my account password hopefully is recovered.

[@juliojustice3100]

@Nolan Drake it worked and I actually got access to my account again. I'm so happy:D Thanks so much you really help me out :D

[@nolandrake4261]

@Julio Justice glad I could help =)

[@AD-ff6mo]

Can you add intro linear regression here as well?

[@khushtandon8726]

Did u find

[@akmaljanrakhmetov4711]

Thank you sir, for excellently explained course on statistics!

[@IFT-CFA]

Most welcome!

[@iannespatrus6956]

In the first example, depending on how you set your null hypothesis your conclusions will be different, right? If your H0 is that variance is less or equal to 6 you will also fail to reject it since 13.19 is lower than 30.144. This shows the uncertainty regarding this sample size and variance values, and the importance of setting your H0 correctly .

[@IFT-CFA]

Yes, true. The hypotheses are the most important aspect. If the hypotheses are incorrect, your conclusion will also be incorrect. The null hypothesis states the "status quo". This hypothesis is assumed to be true until there is evidence to suggest otherwise. The alternative hypothesis is the statement that one wants to conclude. It is also called the research hypothesis. IFT Support Team

[@shivanivasudevan2106]

thank you so much for your amazing lecture sir I was so worried about this reading you explained it on a easy manner thank you!

[@soorya8765]

Since Chi Squared statistics is more than Crtitical value shouldnt Null hypothesis be rejected ?? Thats what we had learnt in Lecture 1

[@yusu1206]

So helpful. How to access linear regression courses? Is it possible to upload those as well? Thanks!

[@khushtandon8726]

Did u find

[@shantanujoshi6991]

Sir in this case we are rejecting h0 when test statistic is less than the critical value...... why is that

[@shantanujoshi6991]

In chi square test ^^^

[@jayflinn3333]

same question at 6:32, I didn't get why we needed to compare the chi statistic to the test statistic since we already came to the conclusion that we shouldn't reject H0

[@IFT-CFA]

Rejection Points for Hypothesis Tests on the Population Variance. 1 “Not equal to” Ha: Reject the null hypothesis if the test statistic is greater than the upper α/2 point or less than the lower α/2 point of the chi-square distribution with df = n − 1. 2 “Greater than” Ha: Reject the null hypothesis if the test statistic is greater than the upper α point of the chi-square distribution with df = n − 1. 3 “Less than” Ha: Reject the null hypothesis if the test statistic is less than the lower α point of the chi-square distribution with df = n − 1. Since the test statistic (13.19) is higher than the rejection point (10.117) we cannot reject H0. IFT Support Team

[@zahidakil]

As mentioned by sir population must be normally distributed but tests are bound by zero in the bottom which means f and chi test follows lognormal distribution. Can somebody tell me if i am wrong?

[@cleow7262]

If we know the "true population variance", why are we hypothesizing about it? In what situation would we actually use variance tests if we already know the true population variance?

[@andrebaptiste3135]

Na I dont think we know the population variance. It's more using the sample variance and testing it against some hypothesized value for sigma

[@IFT-CFA]

The chi-square test for variance is a non-parametric statistical procedure with a chi-square-distributed test statistic that is used for determining whether the variance of a variable obtained from a particular sample has the same size as the known population variance of the same variables. In order to determine the population variance, it is necessary to examine the entire population. It is often sufficient to obtain the population variance based on a representative sample. IFT Support Team

[@anamikayadav5714]

sir for F-test isn't the critical value is 2.58?

[@IFT-CFA]

No, it is 1.6. Use the F-distribution table given in CFAI curriculum IFT Support Team

[@aidanhedley4720]

are these tables and others of hypothesis testing going to be provided in the exam?

[@elgujakhintibidze3432]

As I googled there wont be tables but info will be given in the exercise itself, but as u already know we should remember basic ones such as at 90% 95% 99%

[@Wyt_Rabbit]

Thanks once again. I would recommend you add a $ Thanks button so we can send a cash thanks!

[@harshaljain7359]

Thank you so much sir!

[@krishkohal4544]

king

[@usmanzahid3711]

too much maths in this reading