kind of test

CFA Level I Quant
#1

What kind of test is being used for the following hypothesis and what would a z-statistic of 1.68 tell us about a hypothesis with the appropriate test and a level of significance of 5%, respectively?

H0: B ≤ 0 HA: B > 0

A) One-tailed test; fail to reject the null. B) One-tailed test; reject the null. C) Two-tailed test; fail to reject the null.

#2

Let’s see if I can get this one right for once.

It’s a one-tail test (you reject H0 only if the test statistic is too high, not if it is too low), so the entire 5% is in the right tail. The critical z-value for 5% in the right tail is 1.645. As 1.68 > 1.645, reject H0 in favor of Ha.

#3

absolute right.

#4

Whew!