Level I CFA Quant: Hypothesis Testing-Lecture 2

This is Reading 11 for the 2021 exam.

This CFA exam prep video lecture covers:
Hypothesis tests concerning a single mean
Hypothesis tests concerning differences between means
Hypothesis tests concerning mean differences
Examples

[HimanshuSharma-roym]

There is some problem with the df formula at 13:51.

[amrahmed]

thanks for yr efforts after finishing level one i will buy the videos for level 2 i love ur lessons

[durgapriyabatchu]

In the fund alpha example, the assertion statement is like actual results consistent with population mean 1.6 . As per rules we want to reject null hypothesis Isn’t it the alternative hypothesis is mue #1.6.

[noumaniqbal]

At 8:00 onward, with a single tail test, alpha of 0.05 and z distribution, shouldn't the critical value equal to 1.96?

[AniketSharmafly]

16:36 please check the formula of df and please briefly explanation of t table how to use it?

[tarangbansal]

At 14:05, the formula for the degrees of freedom has some typo in the numerator. It does not seem plausible to have a sqrt operation only on the second term.

[sumitdixit]

sir when to determine Mu=, Mu< and Mu> ?

[owenwesley]

@ 8:00, is there Critical Value 1.65 or 1.96 for the first two explanations? Just need some clarification. Thank you.

[usmanzahid]

dear sir,
if hypothsised mean vaue is 1.6% then null hypothesis should be u not equal to 1.6% and alternative should be like u-1.6%,
because yuo have stated opposite as what im saying.
please guide

[noumaniqbal]

A slight confusion here, when we decide on our Null Hypothesis at 2:31, aren't we supposed to make the NULL hypothesis as to what we don't want the value to be. I.e. in the example shouldn't it be mean monthly return not equal to 1.60 ?

[gauravpareek]

at 18:00 your diffrence is in negative. how it can be? i think diffrence is always positive

[alexsmith]

Sir there is problem at 15:53 in the answer in the right for t =
The way you answered it is different than the way you wrote the formula in 14:00, the formula has u1-u2 in the numerator, but in 15:53 in the answer of t in the right, you did not put u1-u2..

[usmanzahid]

If null hypothesis is 2.6 then it should have not equal to sign as oppose to
Have your say sir?

[sajuthomas]

In the fund Alpha example, the test statistics outcome of 0.35 is less than the critical value of 2.1, but we still do not reject H null? Why?

[healthyeatingmakesawealthy]

Hi,
Just a general query how to use the texas calcuator for In(186.75/208.75)

[rajanishah]

how 48 at 16:10?? the power to is square here and 1/2 at 14:13. plz help!

[jayflinn]

3:41 how did u know to use the = sign for H0?

[wasitapiamwaree]

regarding 7:37 it mentioned that the critical value is equal to 1.65 while on cfa book it's 1.645

[shucky]

Hi to the little bird in the background. Thanks for the videos!

[alecsilvers]

thank you for your videos! I understand we can never be certain of what topics and formulas will be tested but, it seems you can spend a significant amount of time becoming an expert on hypothesis testing which may not be the best use of time. what ways do you suggest balancing granularity with efficiency?