The relationship between confidence intervals and hypothesis tests

June CFA Level 1: CFA Exam Preparation (study notes, practice questions and mock exams)

the relationship between confidence intervals and hypothesis tests

You can use a confidence interval (CI) for hypothesis testing. In the typical case, if the CI for an effect does not span 0 then you can reject the null hypothesis. If exact p-value is reported, then the relationship between confidence intervals and hypothesis testing is very close. However, the objective of the two methods is . All of the confidence intervals that we constructed were two-tailed. These two- tailed confidence intervals go hand-in-hand with the two-tailed hypothesis tests.

the relationship between confidence intervals and hypothesis tests

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