QUESTION: 593

________ states the range over which a population parameter likely lies.

A point estimate
A normal deviate
A confidence interval
A stratified range estimate

Answer(s): C

Explanation:

A confidence interval gives a range of values within which there is a high probability that the population parameter occurs.

Reveal Solution Next Question

QUESTION: 594

In graphs of return performance, which of the following scales is commonly used?

Exponential scale.
Semi-logarithmic scale.
Arithmetic scale.
Log-normal scale.

Answer(s): B

Explanation:

Historical returns are often graphed using a semi-logarithmic scale, where equally-large y-axis movements correspond to equally-large percentage changes. An arithmetic scale, on the other hand, has equally-large y- axis movements corresponding to equally-large arithmetic changes. So on an arithmetic scale, the vertical movement for a price change from 100 to 110 is just as large as the vertical movement from 10,000 to 10,010.
This is widely considered a distortion (if you are considering rates of return), so the semi-logarithmic scale is used instead.

Reveal Solution Next Question

QUESTION: 595

A researcher has a sample of 900 observations from a population whose standard deviation is known to be 3,381. The mean of the sample is calculated to be 465.2. The null hypothesis is stated as Ho: mean < 200. The p-value in this case equals ________.

1.54%
2.26%
1.13%
0.94%

Answer(s): D

Explanation:

To test the hypothesis, you need to calculate the smallest z-statistic since the null hypothesis is unidirectional and to the left. This makes it the hardest to reject the null and you should always use the most stringent criterion for rejecting the null. After all, the null is the hypothesis maintained to be true by default and only a sufficient weight of evidence should be used to reject that view. The smallest z-statistic under the null is calculated to be (465.2 - 200)/(3381/(900^.5)) = 2.35. The right-tailed probability of observing a z-statistic which is at least as big as 2.35 equals 1.0 - 0.9906 = 0.0094 = 0.94%. This is the p-value of the right-tailed test in this sample.

Reveal Solution Next Question

QUESTION: 596

The weights (in kilograms) of a group of crates being shipped to Panama are 95, 103, 110, 104, 105, 112 and
92. What is the mean deviation?

52.50 kg
5.43 kg
0.53 kg
None of these answers
6.25 kg

Answer(s): B

Explanation:

The mean is 103. The mean deviation is the absolute values of the deviation from the mean: (8 + 0 + 7 + 1 + 2 + 9 + 11)/7 = 38/7 = 5.43

Reveal Solution Next Question

Free CFA-Level-I Exam Braindumps (page: 149)

QUESTION: 593

Explanation:

QUESTION: 594

Explanation:

QUESTION: 595

Explanation:

QUESTION: 596

Explanation: