A Type I error in hypothesis testing occurs when:

A Failing to reject a false null

B Rejecting a true null hypothesis (false positive)

C Accepting the correct hypothesis

D No decision is made

✓ Correct Answer: Option B

Type I (α error): concluding an effect exists when it doesnt. Controlled by significance level.

💡 Why is B) the correct answer?

The correct answer to the question "A Type I error in hypothesis testing occurs when:" is Option B: Rejecting a true null hypothesis (false positive).

The other options — A) Failing to reject a false null, C) Accepting the correct hypothesis, D) No decision is made — are incorrect for this CFA Exam Prep question. As explained above: Type I (α error): concluding an effect exists when it doesnt. Controlled by significance level.

📚 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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A Type I error in hypothesis testing occurs when:

✓ Correct Answer: Option B

📚 About This CFA Exam Prep Practice Question

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