QUESTION: 701

Which measure of central tendency is used to determine the average annual percent increase?

Mode
Mean
Weighted mean
Median
Geometric mean

Answer(s): E

Explanation:

The formulaic presentation of the geometric mean is suited for calculating percentage changes. The geometric mean of a set of n positive numbers and is defined as the nth root of the product of the n numbers The two main uses of the geometric mean (GM) are:
1. To average percents, indexes, and relatives, and
2. To determine the average percent increase in sales, production or other business or economic series from one time period to another.

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QUESTION: 702

Given the following four points: (-2, 0), (-1,0), (0,1), (1, 1) and (2, 3)

What is the standard error of the regression line estimate?

None of these answers
0.135
0
0.606
0.367

Answer(s): C

Explanation:

For this, you need to create tables with columns for X,Y,XY,X^2,Y' and Y-Y'. This will be as follows.
XYXY X^2 Y'Y-Y'
-2004-0.40.4
-10010.3-0.3
010010
11111.7-0.7
23642.40.6
Sum057100
N=5.
The regression equation is Y' = a + bX.
The standard error of estimate is
s = sq. root of [S(Y-Y')^2/n-2] where S stands for "Sum of." S = [0^2/3] = 0.

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QUESTION: 703

A study of the opinion of designers with respect to the primary color most desirable for use in executive offices

showed that:

Primary Color Number of Opinions
Red 92
Orange 86
Yellow 46
Green 91
Blue 37
Indigo 46
Violet 2

What is the probability that a designer does not prefer yellow?

1.000
0.885
None of these answers
0.765
0.000

Answer(s): B

Explanation:

There are 400 opinions. 46/400 prefer yellow. So 1 - 46/400 = 177/200 = 0.885 does not prefer yellow.

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QUESTION: 704

What is the median of 26, 30, 24, 32, 32, 31, 27 and 29?

32
30
None of these answers
29
29.5

Answer(s): E

Explanation:

Ordering the numbers we have 24,26,27,29,30,31,32,32. Since there is an even number of observations (8), the median is the average of the two middle observations (29 + 30)/2 = 29.5.

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Free CFA-Level-I Exam Braindumps (page: 176)

QUESTION: 701

Explanation:

QUESTION: 702

Explanation:

QUESTION: 703

Explanation:

QUESTION: 704

Explanation: