Question:

A two-tailed t-test of the hypothesis that the population mean differs from zero has a p-value of  0.0275. Using a significance level of 5%, the most appropriate conclusion is: 
A. to accept the null hypothesis. 
B. to reject the null hypothesis. 
C. that the chosen significance level is too high. 
 

Answer = B 
The p-value is the smallest level of significance at which the null hypothesis can be rejected. In this  case, the given p-value (0.0275) is less than the given level of significance (0.05); therefore, the null  hypothesis is rejected. 

CFA Level I 
"Hypothesis Testing," Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, and David E. Runkle 
Section 2 

 

 

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