QUESTION: 1125

Which value of r indicates the strongest correlation than 0.40?

+0.48
-0.50
0
-0.30
None of these answers

Answer(s): B

Explanation:

The bigger the absolute value of r, the stronger the correlation. The sign +/- just shows the direction, not the strength.

Reveal Solution Next Question

QUESTION: 1126

If you deposit $202.50 today into an account paying 6% per year simple interest, how much interest will you have earned in 2 years?

$2.50
$20.50
$24.30
$24.00
226.80

Answer(s): C

Explanation:

Since this is a simple interest question, the formula is I=PRT, with T here being 2, since the timeframe is 2 years. On the BAII Plus, press 202.50 x 0.06 x 2 = to see the answer. On the HP12C, press 202.50 ENTER 0.06 x 2 x to see the answer. Since the question asks for the amount of interest earned, the original deposit should not be added to this value.

Reveal Solution Next Question

QUESTION: 1127

If 68% of the observations on a normal distribution fall between -20 and + 60, the mean and the standard deviation of the distribution are:

20,40
40,20
40,40
20,20

Answer(s): A

Explanation:

Since the normal distribution is symmetrical about the mean, the mean is equal to (-20 + 60)/2 = 20. Further, for a normal distribution, 68% of the observations lie within one standard deviation of the mean. Therefore, the standard deviation equals 60-20 = 40.

Reveal Solution Next Question

QUESTION: 1128

If you owe a debt of $3,000 today and also owe $5,000 in 24 months, what single payment could you make 15 months from today that would pay off both of these debts, if interest is assessed at 8% per year, compounded monthly?

$8,024.17
$7,751.62
$7,980.86
$8,000.00
$9,041.93

Answer(s): A

Explanation:

To solve this question, set the problem up as the sum of two compound interest calculations. Move the $3,000 from today over to month 15 and add it to the $5,000 brought back from month 24 to month 15. On the BAII Plus, press 15 N, 8 divide 12 = I/Y, 3000 PV, 0 PMT, CPT FV, which yields $3,314.41. Then press STO 1. Then press 9 N, 5000 FV, CPT PV, which yields $4,709.76. Finally press + RCL 1 = to see the answer. On the HP12C, press 15 n, 8 ENTER 12 divide i, 3000 PV, 0 PMT, FV. Then press STO 1. Then press 9 n, 5000 FV, PV. Finally press RCL 1 + to see the answer. Make sure the BAII Plus has the value of P/Y set to 1.

Reveal Solution Next Question

Free CFA-Level-I Exam Braindumps (page: 282)

QUESTION: 1125

Explanation:

QUESTION: 1126

Explanation:

QUESTION: 1127

Explanation:

QUESTION: 1128

Explanation: