QUESTION: 961

A sample of assistant professors on the business faculty at state supported institutions in Ohio revealed the mean income to be $32,000 for 9 months with a standard deviation of $3,000. Using Chebyshev's Theorem, what is the proportion of faculty that earn more than $26,000 but less than $38,000?

At least 25%
None of these answers
At least 75%
At least 100%
At least 50%

Answer(s): C

Explanation:

26,000 and 38,000 are two standard deviations away from the mean. Using 1-(1/k^2) where k = 2, we get 0.75

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QUESTION: 962

If you deposit $7,000 into an account paying 6% per year, compounded annually, how much do you have in the account in 20 years?

$15,938.48
$23,403.52
$20,800.00
$22,470.62
$22,449.95

Answer(s): E

Explanation:

On the BAII Plus, press 20 N, 6 I/Y, 7000 PV, 0 PMT, CPT FV. On the HP12C, press 20 n, 6 i, 7000 PV, 0 PMT, FV. Note that the answer will be displayed as a negative number. Make sure that the BAII Plus has the P/ Y value set to 1.

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QUESTION: 963

With a discount rate of 12% per year, the value of a perpetuity that pays $500 every year is:

$5,231
$6,000
$4,167
$4,756

Answer(s): C

Explanation:

The value of the perpetuity = 500/0.12 = 4,167

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QUESTION: 964

David's gasoline station offers 4 cents off per gallon if the customer pays in cash and does not use a credit card. Past evidence indicates that 40% of all customers pay in cash. During a one hour period twenty-five customers buy gasoline at this station. What is the probability that no more than twenty pay in cash?

0.1
0.9
None of these answers
0.0
1.0

Answer(s): E

Explanation:

P(20) is almost zero. Probabilities of higher than 20 are also close to zero. So the probability of not more than 20 is almost 1.

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Free CFA-Level-I Exam Braindumps (page: 242)

QUESTION: 961

Explanation:

QUESTION: 962

Explanation:

QUESTION: 963

Explanation:

QUESTION: 964

Explanation: