quant: sample exam: two tail test and 95% significance about, should, question

former

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

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

bdavi77962

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

llxx

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.

flyinggirl

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

tikfed

good question.. i guess we apply p less than <0.025 ... can anyone confirm?

bingbingliang

the cfai sample used p<0.05 for a 95% CI, 2 tail. is this wrong?

SpyAli

except you likely wouldn't be testing the intercept?
not sure if I agree with your post... but i think you get the basic idea

RepoToronto

double checked with 2 economics major students, we look at p < 0.05 even if its 2 tail.

wilslm

thanks everyone!