Free CFA-Level-I Exam Braindumps (page: 202)

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The results of the regressions using 200 observation on a variable Y against X are as follows:

Coefficient Standard error
intercept 3.62.1

slope 8.11.3

R square = 49%

The percentage of variance in the dependent variable not explained by the regression equals ________.

  1. 36.4%
  2. 49%
  3. 18%
  4. 51%

Answer(s): D

Explanation:

The R-square of the regression measures the amount of variance of the dependent variable explained by the independent variable. This is given to be 49%. Hence, the amount not explained equals 100% - 49% = 51%.



What is the probability of making a Type II error if the null hypothesis is actually true?

  1. .05
  2. alpha
  3. 1
  4. 0
  5. none of these answers

Answer(s): D

Explanation:

The type II error is accepting a null hypothesis when it is actually false. The probability of committing this error is called beta. Therefore the probability of making a type II error when the null is true is zero.



Which of the following is not a valid reason for selecting a sample instead of studying the whole population?

  1. All of these answers reasons are valid
  2. Sample results have more accuracy than population results
  3. Cost of studying an entire population can be too high
  4. Population can be destroyed in the process of studying it
  5. Study of the population can be too time consuming

Answer(s): B

Explanation:

Sample results cannot be more accurate since it is based on a subset of the population.



What annual interest rate, compounded annually, will cause an original deposit of $500 to grow to $625, after 3 years?

  1. 7.27%
  2. 9.14%
  3. 6.78%
  4. 7.72%
  5. 2.57%

Answer(s): D

Explanation:

On the BAII Plus, press 500 PV, 625 +/- FV, 0 PMT, 3 N, then CPT I/Y. On the HP12C, press 500 PV, 625 CHS FV, 0 PMT, 3 n, then press i.






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