Groundlearn / Glossary / Type II error
Type II error
Also called false negative, beta error. A CFA and FRM term, defined in plain English with the distinction examiners test.
What it means
Failing to reject a false null hypothesis. One minus its probability is the power of the test.
Where it appears in the syllabus
- Quantitative MethodsCFA Level I · exam weight 11–14% · Returns and benchmarks, time value, distributions, portfolio maths, regression.
- Quantitative AnalysisFRM Part I · exam weight 20% · Probability, hypothesis testing, regression, time series, volatility, simulation.
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Educational content only. This is not financial, investment, legal or regulatory advice. Check the official curriculum for your own exam before relying on any definition here.
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