Estimation and Hypothesis Testing

Free CFA Level I lesson in Quantitative Methods. 13 min read, ~1,905 words.

CLT: the sampling distribution of the mean approaches normal as n grows, regardless of population shape. Rule of thumb n ≥ 30. Standard error of the mean = (known variance) or (unknown); it shrinks as n grows. Use z when variance is known, t when unknown; the t distribution has...