📈 CFA Exam Prep

A Type I error in hypothesis testing is:

A Failing to reject a false null
B Rejecting a true null hypothesis
C Accepting a true null
D Not making any decision

✓ Correct Answer: Option B

Type I error (α) = rejecting H₀ when it is actually true (false positive).

💡 Why is B) the correct answer?

The correct answer to the question "A Type I error in hypothesis testing is:" is Option B: Rejecting a true null hypothesis.

The other options — A) Failing to reject a false null, C) Accepting a true null, D) Not making any decision — are incorrect for this CFA Exam Prep question. As explained above: Type I error (α) = rejecting H₀ when it is actually true (false positive).

📚 About This CFA Exam Prep Practice Question

This 2-level CFA Exam Prep question from the Quantitative Methods topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CFA Exam Prep practice test or use flashcards for spaced repetition review.

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