LOS 9c Quant

CFA Level II
#1

What does this LOS call for when it says “Formulate”, does it mean calculate? or derive? and I’ve never seen a question like this before.

"Formulate a test of the hypothesis that the poplation correlation coefficient equals zero, and determine whether the hypotehsis is rejected at a given level of significance. "

#2

It means put words into formula.

Ho=0 that kind of thing.

#3

https://www.cfainstitute.org/programs/Documents/cfa_and_cipm_los_command_words.pdf

#4

Fixed it for you… Ho=0 doesn’t mean anything-- need to specify the parameter (or say there is no linear relationship between x and y, for this example).