For anyone has taken CFA L1 test before, can you please let me know will these tables be provided or have to remember those critical value? Thanks!
Learn the critical values for normal distribution 68%, 90%, 95%. 99% both for 1 tail and two tail tests. I have not come across a single question about tvalues where t values were not provided.
Note that they won’t give you the whole table, just the line you need and a couple of other distracting lines for lower and higher values. It can be a little unnerving when you expect to see the page of numbers you are used to and only see a table with <10 values in it, so don’t be thrown. Also, I have never know the test NOT to have a question on standard normal distribution…
Hey Guys, I know the critical values for normal distribution 68%, 90%, 95%. 99% which are respectively 1, 1.65, 1.96 and 2.58. These values are for the two tailed tests, aren’t they?! For 1 tail test, we multiply by 2? Thanks a lot and Good luck for eveyone>.
I have two confusions. 1. Is normal distribution the same as “Standard normal distribution” ? in CFA L1 test? Sometimes, I saw quant questions say some observations are “Normal” without saying :standard". 2. For critical values, I saw some Qbank answers use 2 for 95% two-tailed, instead of more precise 1.96. Does it mean, we have to be smart when doing questions to select between them? Steve
I think 1) yes, and 2) could the Qbank question possibly have said “closest to” when it asked the question?
- Normal and standard normal are very different. A Normal R.v. can have any mean and any std dev > 0. 2. There will not be questions on teh exam in which 1.96 would be right and 2 would be wrong and those are both answers.
Thanks Joey, Can you please let me know where in Notes I can find the defination and use of both normal and std normal distribution? Thx Steve
I don’t know but wiki has everything http://en.wikipedia.org/wiki/Normal_distribution
Hey Guys, No one gave me any answer for the the difference between critical values for a 1 tail and 2 tail test :[ Let me make my question more straightforward with an example, is the 2 tail test with a significance level of 5% the same as the critical value for a one tail test using a significance level of 10% (which is equal to 1.96 for a normal distribution). Thanks a lot!! Malek
joeyDvivre, you are absolutely right, and reading your answer on normal and std. normal reminds me i need to start my review today!!!
“The standard normal distribution is the normal distribution with a mean of zero and a variance of one” Joey, you rock! Malek, I think it’s the other way around, 2 tail test with a significance level of 10% has the same Critical value as 1-tail test with a significance level of 5%