Day 12 - Hypothesis Testing and Cofidence Interval - Review and Practice - CFA Level 1 Prep

 Goal: Today's goal  is to turn Day 10–11 concepts into automatic exam‑style problem solving across all the testing ascpects covered so far like mean, variance, CI, p‑value/critical value, Type I/II, etc.

Make it a day for mixed concept drill

Make a single sheet that forces you to recall definitions and decision rules

• From Day 10: null vs alternative, one‑ vs two‑tailed, significance level, Type I and II errors, decision rule, test statistic idea.

• From Day 11: CI construction, when to use z vs t, single mean test, single variance test, p‑value vs critical value, power.

Questions

Do a set of 15–20 questions that mix:

• Constructing CIs (mostly 95%, with a few 90%/99%).
• Testing hypotheses about a single mean (both one‑ and two‑tailed).
• Using both critical value and p‑value approaches.

For each question, explicitly answer:

1. What are H₀ and H₁?
2. What distribution (z or t) and why?
3. Test statistic value.
4. Decision by p‑value, decision by critical value.
5. If applicable, check: does the CI include the hypothesized value?

Variance Tests + Power Interpretation

Do 5–8 questions on tests of a single variance using chi‑square. Focus on:

1. Correct df, correct tail(s), and reading chi‑square critical values.

Then add 3–5 conceptual questions (or create them for yourself) on:

1. How increasing sample size affects power.
2. How changing α changes Type I vs Type II trade‑off.

End Day 12 Quant session with a mini Quant block (20–25 questions) just on testing/CI:

• Time yourself at ~1.5 min/question.
• Then review and mark each as: “Concept error”, “Formula error”, or “Careless”.
• Anything that is a concept or formula error becomes priority for Day 13.

Daily Ethics block: 30–45 min

Try this pattern each day:

1. 10–15 min reading / notes
• Pick one small chunk: one Standard (e.g., Standard II(A)–Material Nonpublic Information) or a short section of GIPS.
• Make 2–3 bullet notes in your own words: “What is prohibited? What is allowed?”
2. 15–20 min questions
• Do 8–12 vignette‑style or stand‑alone Ethics questions from your Q‑bank or CFAI practice.
• Aim for careful reading, not speed. Ethics is about nuance and wording.