QUESTION: 1057

A normal distribution has a mean of 4.1 and a standard deviation of 2.3. The probability that a value from this distribution will be negative equals ________.

0.0206
0.0375
0.0121
0.4625

Answer(s): B

Explanation:

The z-value of a selected observation, X, from a normal distribution with mean M and standard deviation S equals z = (X-M)/S. in the present case, the z-value of X = 0 equals -4.1/2.3 = -1.78. Then, the probability that a number Y is negative is the same as the probability of a z-value less than -1.78. Using the Normal probability tables to get P(z < -1.78) is tricky because the table given in the assigned text is only for positive values. To calculate the probability, use the fact that the standard normal distribution is symmetrical about zero. Hence, P(z < -1.78) = P(z > + 1.78) = 1.0 - 0.9625 = 0.0375.

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QUESTION: 1058

A study of the opinion of designers with respect to the primary color most desirable for use in executive offices showed that:

Primary Color Number of Opinions
Red 92
Orange 86
Yellow 46
Green 91
Blue 37
Indigo 46
Violet 2

What is the probability that a designer does not prefer blue?

None of these answers
0.9075
1.0000
0.8850
0.7725

Answer(s): B

Explanation:

P(Blue) = 37/400. P(not blue) = 1 - 37/400 = 0.9075.

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QUESTION: 1059

If you deposit $2,345 into an account paying 6.5% per year simple interest, how much interest will be earned after 8 months?

$101.62
$14.09
$309.68
$94.64
$122.65

Answer(s): A

Explanation:

The question only asks for the earned interest, not the total amount in the account. On the BAII Plus, press 2345 x 0.065 x 8 divide 12 = to see the answer. On the HP12C, press 2345 ENTER 0.065 x 8 x 12 divide to see the answer.

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QUESTION: 1060

If you deposit $1,400 today into a savings account paying 8% per year, compounded semiannually, how much is in your account in 5 years?

$2,072.34
$1,587.85
$2,487.15
$1,330.55
$1,857.58

Answer(s): A

Explanation:

On the BAII Plus, press 10 N, 8 divide 2 = I/Y, 1400 PV, 0 PMT, CPT FV. On the HP12C, press 10 n, 8 ENTER 2 divide i, 1400 PV, 0 PMT, FV. 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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Free CFA-Level-I Exam Braindumps (page: 265)

QUESTION: 1057

Explanation:

QUESTION: 1058

Explanation:

QUESTION: 1059

Explanation:

QUESTION: 1060

Explanation: