QUESTION: 529

What quarterly payment is required beginning one period from today to pay off a $3,000 debt, if interest accrues at 6% per year, compounded quarterly, and the debt is to be retired in 10 years?

$107.41
$88.63
$114.29
$87.83
$100.28

Answer(s): E

Explanation:

On the BAII Plus, press 40 N, 6 divide 4 = I/Y, 3000 PV, 0 FV, CPT PMT. On the HP12C, press 40 n, 6 ENTER 4 divide i, 3000 PV, 0 FV, PMT. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.

Reveal Solution Next Question

QUESTION: 530

Which of the following statements is false regarding confidence levels and/or tests of significance?

In most hypothesis testing, the confidence level is equal to 0.10, 0.05, and 0.01.
All else equal, the confidence interval of a hypothesis test with a 5% level of significance is less than the confidence interval for a hypothesis test with a 1% level of significance.
In most hypothesis tests, the power of the test is equal to (1 - alpha).
More than one of these answers is incorrect.
The significance level of a test is equal to (1 - confidence level).
The power of a test is equal to the confidence level.

Answer(s): D

Explanation:

More than one of these answers is incorrect. Specifically, in most hypothesis tests, the significance level is equal to the probability of a Type I error (denoted by the Greek letter alpha) and the power of the test can be found by (1 - beta), where beta represents the probability of a Type II error. Remember that statisticians are much more concerned with the probability of a Type I error, which is defined as the act of incorrectly rejecting the null hypothesis. A Type II error, which is defined as the act of incorrectly failing to reject the null hypothesis, is much more difficult to predict. Second, power of a test is not equal to the confidence level of the test.

Reveal Solution Next Question

QUESTION: 531

Which of the following is not true regarding the normal distribution?

It is symmetrical
It has a single peak
None of these answers
Mean, median and mode are all equal
The points of the curve meet the X-axis at z = -3 and z = 3

Answer(s): E

Explanation:

Nothing is stated about the points where the curve meets the X axis (does it meet at all?)

Reveal Solution Next Question

QUESTION: 532

You wish to count the number of ways in which n objects can be assigned to k different categories, with n_i members in the ith category. The counting method you should use is:

The permutation rule.
The binomial formula.
None of these answers is correct.
The multinomial formula.

Answer(s): D

Explanation:

The number of ways that you can arrange n objects so that there are n_1 of one kind, n_2 of another kind, and so on, up to n_k of a kth kind, is found by using the multinomial formula: n! / [(n_1)! * (n_2)! * ... * (n_k)!].

Reveal Solution Next Question

Free CFA-Level-I Exam Braindumps (page: 133)

QUESTION: 529

Explanation:

QUESTION: 530

Explanation:

QUESTION: 531

Explanation:

QUESTION: 532

Explanation: