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Free CFA-Level-I Exam Braindumps (page: 122)

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If the hypothesized value of a parameter under the null hypothesis lies outside the confidence interval, the null hypothesis:

  1. none of these answers.
  2. cannot be rejected at the corresponding significance level.
  3. should be rejected at the corresponding significance level.
  4. is ill-specified.

Answer(s): C

Explanation:

The confidence interval specifies the range over which the true value of the estimated parameter can lie without rejecting the null hypothesis at the given level of significance.



What sample statistic is used to estimate a population value?

  1. None of these answers
  2. Point estimate
  3. Parameter
  4. Interval estimate
  5. Sampling error

Answer(s): B

Explanation:

The point estimate is the estimate of a particular value in the population.



What is the area under the normal curve for z > 1.79?

  1. None of these answers
  2. 0.4633
  3. 0.0401
  4. 0.9599
  5. 0.0367

Answer(s): E

Explanation:

From the z-tables, z = 1.79 is 0.4633. So 1 - 0.4633*2 = 0.0734. Since it is on each side of the curve, 0.0734/2 = 0.0367.



What does it mean if r = -1.00?

  1. High values of one variable are associated with low values of the other variable
  2. Dependent variable can be perfectly predicted by the independent variable
  3. All of the variation in the dependent variable can be accounted for by the independent variable
  4. Coefficient of nondetermination equals zero
  5. All of these answers are correct

Answer(s): E

Explanation:

All the above are properties or explanations of the coefficient of correlation being equal to -1.0.






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