QUESTION: 1049

John was offered a salary of $25,000 when he graduated from school 15 years ago. He was somewhat depressed to read that the average starting salary for someone with his degree today was $45,000. He then decided to determine the annual, compound rate of increase implied in the increase of the starting salary from $25,000 to $45,000 in 15 years. What is this annually compounded growth rate?

4.00%
7.15%
1.03%
8.42%
12.00%

Answer(s): A

Explanation:

Essentially, this question is a compound interest problem with the interest rate as the unknown value. On the BAII Plus, press 15 N, 25000 PV, 0 PMT, 45000 +/- FV, CPT I/Y. On the HP12C, press 15 n, 25000 PV, 0 PMT, 45000 CHS FV, i. John would seem to have no reason to be depressed, since the starting salary today has increased by only 4% per year over the last 15 years, which might be somewhat near the past rate of inflation.
Make sure the BAII Plus has the P/Y value set to 1.

Reveal Solution Next Question

QUESTION: 1050

Which of the following is NOT a reason for sampling the population?

Some tests are destructive in nature and hence, should be carried out only on small samples.
Inferences from a sample are the same that would be obtained by studying the entire population.
It is almost impossible to work with the entire population in most cases.
Samples are far easier to work with than the entire population.

Answer(s): B

Explanation:

Remember, the entire population contains more information than the sample. With the population, you would get exact parameter values characterizing the population whereas with a sample, you only get estimates.

Reveal Solution Next Question

QUESTION: 1051

A statistician has framed his hypothesis testing problem as:
Ho: mean >= 1 H1: mean < 1
For the given sample, he calculates the z-statistic. Then, the region of rejection at the 95% level is given by:

z-statistic > +1.96
z-statistic < -1.645
-1.96 < z-statistic < +1.96
z-statistic < -1.96

Answer(s): B

Explanation:

Since the alternative hypothesis is directional and to the left, the rejection region for the null is also to the left.
Hence, you should use a one-tailed test. 5% of the probability mass in a Normal distribution lies in the left tail with values which are less than -1.645. Therefore, the rejection region comprises of z-values less than -1.645.

Reveal Solution Next Question

QUESTION: 1052

On a survey questionnaire, students were asked to indicate their class rank in college. If there were only four choices from which to choose, which measure(s) of central tendency would be appropriate to use for the data generated by that questionnaire item?

Mean and mode
Mode only
Mode and median
Median only
Mean and median

Answer(s): C

Explanation:

We can discard the mean since it is not appropriate here. If we want to find out which class has the most students or where the students are most frequently ranked, then the mode and median should be used.

Reveal Solution Next Question

Free CFA-Level-I Exam Braindumps (page: 263)

QUESTION: 1049

Explanation:

QUESTION: 1050

Explanation:

QUESTION: 1051

Explanation:

QUESTION: 1052

Explanation: