QUESTION: 561

The coefficient of variation of a distribution X is twice that of Y. If X and Y have the same means, the variance of Y is:

half that of X.
twice that of X.
none of these answers.
same as that of X.

Answer(s): C

Explanation:

The coefficient of variation equals the standard deviation divided by mean. Since X and Y have the same mean, X must have a standard deviation which is twice that of Y for its coefficient of variation to be twice that of Y.
Then, the variance of X is 2^2 = 4 times that of Y.

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QUESTION: 562

Milton Samuel, a quantitative analyst with Middle Road Brokerage, is examining a data sample and has amassed the following information:

Standard deviation of the sample: 12.37
Number of observations: 100
Sample mean: 231

Assume that Mr. Samuel formulates a null hypothesis stating that the population mean is equal to 212. Additionally, assume that the population standard deviation is unknown. Given this information, what is the standard error of the estimate? Further, what is the test statistic? Choose the best answer.

1.530; 10.19
1.250; 15.20
1.250; 16.91
1.237; 5.40
None of these answers is correct.
1.530; 12.42
1.237; 15.36

Answer(s): G

Explanation:

If the population standard deviation is unknown, as in this example, the standard error of the estimate is found by using the following equation:
{Standard error = s / square root of n} where s = the sample standard deviation and n = the number of observations in the sample.
In this example, all of the necessary information has been provided, and the determination of the standard error of the estimate is found as:
{Standard error = [12.37 / 10] = 1.237}
Now that the standard error of the estimate has been calculated, the test statistic can be found by using the following equation:
{Test statistic = [sample statistic - value of the population parameter under the null hypothesis] / standard error of the sample statistic].
Again, all of the necessary information has been provided, and the calculation of the test statistic is found as follows:
{Test statistic = [231 - 212] / 1.237 = 15.360}

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QUESTION: 563

If you deposit $123 into an account paying 6% per year simple interest, what is the balance in your account 8 months later?

$182.04
$246.00
$123.92
$127.92
$131.51

Answer(s): D

Explanation:

Calculate the simple interest earned and add it to the original deposit. On the BAII Plus, press 123 x 0.06 x 8 divide 12 = + 123 = to see the answer. On the HP12C, press 123 ENTER 0.06 x 8 x 12 divide 123 + to see the answer.

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QUESTION: 564

Suppose you were given $10,000 today and deposited it into an account paying 10% per year, compounded monthly. If you know that you will need $5,000 in the account 5 years from now, what monthly withdrawal can you make from the account, beginning one month from now, that will leave the account with exactly $5,000 in it in 5 years?

$147.90
$83.33
$1,066.81
$140.04
$1,001.65

Answer(s): A

Explanation:

On the BAII Plus, press 60 N, 10 divide 12 = I/Y, 10000 PV, 5000 +/- FV, CPT PMT. On the HP12C, press 60 n, 10 ENTER 12 divide i, 10000 PV, 5000 CHS FV, PMT. Note that the answer is a negative number. This is because it is a withdrawal from the account balance, just as the $5,000 is. Make sure the BAII Plus has the value of P/Y set to 1.

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Free CFA-Level-I Exam Braindumps (page: 141)

QUESTION: 561

Explanation:

QUESTION: 562

Explanation:

QUESTION: 563

Explanation:

QUESTION: 564

Explanation: