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标题: Schweser pg 337 Significance level [打印本页]

作者: homie    时间: 2013-8-20 20:28     标题: Schweser pg 337 Significance level

For problem 18 on pg 337, why does the solution use 0.025 for level of significance when the problem clearly states 0.05% level of significance?
Please advice.
Thanks.
作者: d2rockstar    时间: 2013-8-20 20:32

Don’t have the L1 curriculum in front of me, but it’s probably because the problem involves a two-tailed test.
作者: bkballa    时间: 2013-8-20 20:37

If the hypothesis is an equal sign ( = ), it is a two-tailed test.
You have to divide the level of significance by two.




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