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CFA® Level I question of the day

26 October 2026 · Quantitative Methods

When is the t distribution the right one for inference about a mean?

Show the answer and explanation

Answer: C. When the population standard deviation is unknown

That is the usual case in practice, which is why the t-test is the workhorse.

Why the other options are wrong:

  • A. When the sample is small regardless of what is known - If the population standard deviation is genuinely known, the normal applies at any sample size. It is what is unknown that matters, not how much data there is.
  • B. When the population is not normal - Non-normality is handled by the central limit theorem and a large enough sample, not by switching to t.

Medium · QM.6.d · learning outcome: Explain the chi-square, F and Student's t distributions

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