QUESTION: 709

What does a regression equation do?

Predicts the value of the independent variable based on the dependent variable
All of these answers
None of these answers
Measures the association between two variables
Predicts the value of the dependent variable based on the independent variable

Answer(s): E

Explanation:

The dependent variable is the variable Y which is being predicted by the X variable, the independent variable.
The regression is written as Y' = a + bX. The letter "a" is the Y intercept and b is the slope of the line. Y' is the predicted value of Y given a specific value of X.

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QUESTION: 710

Under the null hypothesis, Ho, x = y. Under the alternative hypothesis, x does not equal y. If the critical z- statistic for the desired significance level is 1.68 and you find the z-statistic to be -3.2, you should:

Reject the alternative hypothesis.
Reject the null hypothesis.
Fail to reject the null hypothesis.
Accept the null hypothesis.

Answer(s): B

Explanation:

Since the z-statistic is larger in magnitude than the critical value, you should reject the null hypothesis. Note that all the other alternatives loosely mean the same thing.

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QUESTION: 711

Kevin wants to retire a millionaire. If he is 45 years old today and already has $80,000 in the bank, what monthly deposit would he need to make beginning one month from today and continuing until he retires on his 65th birthday, if the money will earn 8% per year, compounded monthly?

$1,028.58
$1,760.14
$407.81
$1,138.45
$2,119.81

Answer(s): A

Explanation:

The total number of deposits will be 240 (20 years x 12 months/year). On the BAII Plus, press 240 N, 8 divide 12 = I/Y, 80000 PV, 1000000 +/- FV, CPT PMT. On the HP12C, press 240 n, 8 ENTER 12 divide i, 80000 PV, 1000000 CHS 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.

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QUESTION: 712

The employees of Cartwright Manufacturing are awarded efficiency ratings. The distribution of the ratings approximates a normal distribution. The mean is 400, the standard deviation 50. What is the area under the normal curve between 400 and 482?

0.4750
0.3413
0.5000
0.4495
None of these answers

Answer(s): D

Explanation:

z = (x-u)/sigma. z1 = 400 - 400/50 = 0 and z2 = 482 - 400/50 = 1.64. Therefore for z = 1.64, the area under the curve is 0.4495.

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Free CFA-Level-I Exam Braindumps (page: 178)

QUESTION: 709

Explanation:

QUESTION: 710

Explanation:

QUESTION: 711

Explanation:

QUESTION: 712

Explanation: