QUESTION: 785

If the sample variance for a frequency distribution consisting of hourly wages was computed to be 10, what is the sample standard deviation?

$3.16
None of these answers
$1.96
$4.67
$10.00

Answer(s): A

Explanation:

Sample standard deviation is the square root of the sample variance.

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QUESTION: 786

Type II error refers to the event that we will:

Fail to reject the null when it is false.
Accept the alternative when it is false.
Reject the null when it is true.
Reject the alternative when it is true.

Answer(s): A

Explanation:

Remember that the null hypothesis is the one that you maintain to be true unless there is sufficient evidence to prove otherwise. Therefore, the first type of mistake that can happen is that you reject the maintained hypothesis when in fact, it is true. This error is referred to as "Type I" error. On the other hand, you may not have sufficient evidence to disprove the null when in fact, it is false. This failure to appropriately reject the null is referred to as "Type II" error.

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QUESTION: 787

Of 900 consumers surveyed, 414 said they were very enthusiastic about a new home decor scheme. What is the 99% confidence interval for the population proportion (in percent)?

42 and 50
None of these answers
30 and 40
30 and 60
31 and 51

Answer(s): A

Explanation:

Interval estimate can be found from p +/- z[p(1-p)/n]^0.5. Here we have n = 900, p = 414/900 = 0.46 and z = 2.58 (for 99%). Therefore 0.46 +/- 2.58*0.01661 and we get 0.42 and 0.50.

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QUESTION: 788

What is the present value today of these annual cash flows: $300, $1,200, $2,500? Assume the first cash flow occurs 1 year from today and an interest rate of 9% per year, compounded annually.

$3,215.70
$2,989.06
$3,244.09
$3,298.82
$3,308.86

Answer(s): A

Explanation:

You could solve this question using 3 different compound interest problems, but it is easier to solve them using the calculator's cash flow functions. On the BAII Plus, press CF 2nd CLRWork 0 ENTER DownArrow 300 ENTER DownArrow DownArrow 1200 ENTER DownArrow DownArrow 2500 ENTER DownArrow DownArrow 2nd Quit. Then press NPV 9 ENTER DownArrow CPT. On the HP12C, press these keys: 0 BlueShift CFo 300 BlueShift CFj 1200 BlueShift CFj 2500 BlueShift CFj. Then press 9 i, YellowShift NPV. The "DownArrow" represents the downward-pointing arrow on the top row of the BAII Plus keyboard. Make sure that the BAII Plus has the P/Y value set to 1.

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Free CFA-Level-I Exam Braindumps (page: 197)

QUESTION: 785

Explanation:

QUESTION: 786

Explanation:

QUESTION: 787

Explanation:

QUESTION: 788

Explanation: