QUESTION: 1101

"Statistical inference" refers to the process of:

drawing conclusions about the entire population based on the statistical characteristics of a sample.
drawing inferences about the characteristics of a distribution based on population data.
predicting the statistical characteristics of a randomly drawn sample based on the knowledge about the entire population.
selecting a probability sample and the statistical method used to analyze it.

Answer(s): A

Explanation:

Note that statistical inference is always carried out with sample data, since you never have access to the entire population (if you did, you would no longer call it "inference"!).

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A study of the scores on an in-plant course in management principles and the years of service of the employees enrolled in the course resulted in these statistics:

Mean test score was 200 with a standard deviation of 40

Mean number of years of service was 20 years with a standard deviation of 2 years

In comparing the relative dispersion of the two distributions, what are the coefficients of variation (CV)?

Test 50%, service 60%
Test 35%, service 45%
Test 100%, service 400%
Test 20%, service 10%
None of these answers

Answer(s): D

Explanation:

The respective CVs are found from (s*100)/mean. Test: 40*100/200 = 20% and Service: 2*100/20 = 10%.

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QUESTION: 1103

How long will it take money to double at 9.5% per year, compounded annually?

28.03 years
1.29 years
10.14 years
7.64 years
4.1 years

Answer(s): D

Explanation:

To solve this question, choose a future value that is twice the size of the present value. The actual number will not matter. On the BAII Plus, press 9.5 I/Y, 1000 PV, 0 PMT, 2000 +/- FV, CPT N. On the HP12C, press 9.5 i, 1000 PV, 0 PMT, 2000 CHS FV, n. Note that the HP12C will show 8 for the answer. The answer will be the same as long as the FV is twice as large as the PV.

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QUESTION: 1104

Which measures of central tendency are not affected by extremely low or extremely high values?

None of these answers
Geometric mean and mean
Mean and mode
Mode and median
Mean and median

Answer(s): D

Explanation:

Both are concepts which are based on the position of the observations when ordered (median) and the number of most frequent occurrences (mode). They are measures which are not affected by extreme values.

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Free CFA-Level-I Exam Braindumps (page: 276)

QUESTION: 1101

Explanation:

QUESTION: 1102

Explanation:

QUESTION: 1103

Explanation:

QUESTION: 1104

Explanation: