quant: sample exam: two tail test and 95% significance

about, should, question

the question about "
exhibit 2 and two tail t-test to deterine if the coefficients are equal to zero, at the 0.05 significance level, ....

is it is at 0.05 significance level should we also accept Hull hyp for intercept=0? as its p-value >0.025? Thanks.

Kapie

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2^#

发表于 2011-7-13 16:09 | 只看该作者

i was actually a little bit confused about the solution too. I would use p-value < 0.025 for 95% CI 2-tail, but CFAI used p < 0.05

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bdavi77962

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3^#

发表于 2011-7-13 16:09 | 只看该作者

p-value is to be compared to alpha (level of significance)....if it's a 5% signficance level, p-value needs to <0.05

two tail tests simply have alpha/2 on each tail...but p-value is still compared to alpha

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llxx

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4^#

发表于 2011-7-13 16:09 | 只看该作者

If you look at the table, a one sided at 95 gives the same t value as a two sided at 90.

For this reason, the p-value for a one sided 5% sig will never be the same as a two-sided at 5% sig.

Edited 1 time(s). Last edit at Thursday, June 2, 2011 at 11:16AM by CFA_Chap.

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flyinggirl

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5^#

发表于 2011-7-13 16:09 | 只看该作者

so for a two tailed test, if it is 5% significance level, and p-value is 0.04, than reject Ho?
or if p-value is 0.015, then we could reject H0?
which value p-value should compare against ? 5% or 2.5% in two tail test? Thanks.
MFIN--- Wrote:
-------------------------------------------------------
> p-value is to be compared to alpha (level of
> significance)....if it's a 5% signficance level,
> p-value needs to <0.05
>
> two tail tests simply have alpha/2 on each
> tail...but p-value is still compared to alpha

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tikfed