Hypothesis Testing (FRM Part 1 2025 – Book 2 – Chapter 6)

Hypothesis Testing (FRM Part 1 – Book 2 | Quantitative Analysis) Learn how to construct and interpret hypothesis tests for FRM Part 1. Professor James covers null and alternative hypotheses, Type I and Type II errors, p values, one-tailed and two-tailed tests, confidence intervals, and comparing two population means. After this video, you will be able to: • Formulate null and alternative hypotheses • Use p values and confidence intervals to accept or reject hypotheses • Understand Type I and Type II errors and test power • Identify when to use z tests vs t tests • Compare two population means with paired or independent samples Access video lessons, mock exams, question banks, and formula sheets for FRM Part 1 and Part 2: https://analystprep.com/shop/unlimite... AnalystPrep is a GARP-Approved Exam Preparation Provider for FRM Exams After completing this reading, you should be able to: Construct an appropriate null hypothesis and alternative hypothesis and distinguish between the two. Construct and apply confidence intervals for one-sided and two-sided hypothesis tests, and interpret the results of hypothesis tests with a specific level of confidence. Differentiate between a one-sided and a two-sided test and identify when to use each test. Explain the difference between Type I and Type II errors and how these relate to the size and power of a test. Understand how a hypothesis test and a confidence interval are related. Explain what the p-value of a hypothesis test measures. Interpret the results of hypothesis tests with a specific level of confidence. Identify the steps to test a hypothesis about the difference between two population means. Explain the problem of multiple testing and how it can bias results. #FRM #HypothesisTesting #FinancialRiskManagement #QuantitativeAnalysis #AnalystPrep