QUESTION: 1041

Suppose you were given $4,000 today and deposited it into an account paying 8% per year, compounded monthly. If you know that you will need $5,000 in the account 10 years from now, what monthly withdrawal can you make from the account, beginning one month from now, that will leave the account with exactly $5,000 in it in 10 years?

$24.45
$21.20
$23.45
Can't be done
$11.23

Answer(s): B

Explanation:

On the BAII Plus, press 120 N, 8 divide 12 = I/Y, 4000 PV, 5000 +/- FV, CPT PMT. On the HP12C, press 120 n, 8 ENTER 12 divide i, 4000 PV, 5000 CHS FV, PMT. Note that the answer is a negative number, indicating that this is a monthly withdrawal that can be made from the account in addition to the $5,000 in 10 years. Make sure the BAII Plus has the value of P/Y set to 1.

Reveal Solution Next Question

QUESTION: 1042

Which of the following is /are true?

Doubling every single value in a sample doubles the sample median.
II. Adding a constant to each value in a sample causes the median to increase by the same constant.
III. The median of a sample decreases as the number of observations increases.
II only
I only
I only
I & III
II only
III only
I & II

Answer(s): G

Explanation:

The median of a set with odd number of observations equals the "middle" observation. If the number of observations is even, the median is the mean of the two middle observations. From this, I & II follow. (III) is not necessarily true.

Reveal Solution Next Question

QUESTION: 1043

A discrete probability distribution is the same as:

a collection of all possible outcomes of an experiment.
an absolute frequency distribution.
a relative frequency distribution.
none of these answers.

Answer(s): C

Explanation:

The relative probability distribution of a set shows the relative frequency in each category in which the observation set is subdivided i.e. it shows the percentage of the observation set lying in each class.
This also represents the probability distribution of the observation set.

Reveal Solution Next Question

QUESTION: 1044

In the regression equation, what does the letter "b" represent?

Slope of the line
Value of Y when X=0
Any value of the independent variable that is selected
Y concept
None of these answers

Answer(s): A

Explanation:

The regression is written as Y' = a + bX. The letter "a" is the Y intercept and b is the slope of the line.

Reveal Solution Next Question

Free CFA-Level-I Exam Braindumps (page: 261)

QUESTION: 1041

Explanation:

QUESTION: 1042

Explanation:

QUESTION: 1043

Explanation:

QUESTION: 1044

Explanation: