QUESTION: 1105

In a distribution that is right skewed:

the median is larger than the mean.
large negative deviations dominate large positive deviations.
the mean is positive.
large positive deviations dominate large negative deviations.

Answer(s): D

Explanation:

large positive deviations dominate large negative deviations.

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QUESTION: 1106

The mean of a normal probability distribution is 500 and the standard deviation is 10. About 95 percent of the observations lie between what two values?

None of these answers
475 and 525
480 and 520
350 and 650
400 and 600

Answer(s): C

Explanation:

95% lie between plus and minus two standard deviations of the mean.

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QUESTION: 1107

Which of the following is/are true?

If P(A or B) = P(A) + P(B), A and B are independent
II. If P(A and B) = P(A).P(B), A and B are mutually exclusive
III. If P(A and B) = P(A) + P(B), P(A) = P(B) = 0
III only
II & III
I only
II only
I & II

Answer(s): A

Explanation:

If A and B are independent, P(A and B) = P(A).P(B) and vice versa. If A and B are mutually exclusive, P(A and B) = 0. Note that P(A or B) = P(A) + P(B) - P(A and B). Hence, if P(A and B) = P(A) + P(B), the P(A or B) = 0.
This implies that neither A nor B can occur, giving P(A) = P(B) = 0.

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QUESTION: 1108

Manufacturers were subdivided into groups by volume of sales. Those with more than $100 million in sales were classified as Class A large; those from $50 to $100 million as Class A medium size; and those between $25 and $50 million, and so on. Samples were then selected from each of these groups. What is this type of sampling called?

Stratified random
Simple random
Convenience
None of these answers
Panel

Answer(s): A

Explanation:

This is stratified random sampling. It is a method of selecting a random item from each section of the population. The randomness comes from the random selection from a particular section. Stratified refers to the division of the sections.

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Free CFA-Level-I Exam Braindumps (page: 277)

QUESTION: 1105

Explanation:

QUESTION: 1106

Explanation:

QUESTION: 1107

Explanation:

QUESTION: 1108

Explanation: