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Free CFA-Level-I Exam Braindumps (page: 222)

Page 221 of 991
PDF with 3963 Questions

If the alternate hypothesis specifies a particular direction for the population parameter, it is appropriate to use:

  1. a z-statistic test.
  2. a stratified sampling test.
  3. a one-tailed test.
  4. a two tailed test.

Answer(s): C

Explanation:

A one-tailed test is used when the alternate hypothesis specifies a particular direction for the population parameter.



If you buy a house costing $120,000 and pay for it over 30 years, what is your monthly payment, if your loan's interest rate is 7% per year, compounded monthly and the first payment is due next month?

  1. $4,371.83
  2. $8,400.00
  3. $798.36
  4. $665.30
  5. $804.39

Answer(s): C

Explanation:

On the BAII Plus, press 360 N, 7 divide 12 = I/Y, 120000 PV, 0 FV, CPT PMT. On the HP12C, press 360 n, 7 ENTER 12 divide i, 120000 PV, 0 FV, PMT. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the value of P/Y set to 1.



Suppose a tire manufacturer wants to set a mileage guarantee on its new XB 70 tire. Life test revealed that the mean mileage is 47,900 and the standard deviation of the normally distributed distribution of mileage is 2,050 miles. The manufacturer wants to set the guaranteed mileage so that no more than 5 percent of the tires will have to be replaced. What guaranteed mileage should the manufacturer announce?

  1. 32,960
  2. 44,528
  3. 49,621
  4. 40,922
  5. None of these answers

Answer(s): B

Explanation:

Find the z-value for an area under the curve of 1.0 - 0.55 = 0.45. For an area of 0.45, z = -1.645. Using z = (x- u)/sigma. -1.645 = x - 47900/2050. x = 44528.



If you have $5,000 in an account today and withdraw $2,000 in 3 years, how much can you withdraw from the account in 5 years, if the account earns interest at 8% per year, compounded annually?

  1. $3,000.00
  2. $5,013.84
  3. $4,407.98
  4. $5,714.93
  5. $2,000.00

Answer(s): B

Explanation:

The way to approach this problem is to find the PV today of the $2,000 amount, determine the difference between this amount and the original $5,000 amount, and then move this remaining amount to the 5 year point.
On the BAII Plus, press 3 N, 8 I/Y, 2000 FV, 0 PMT, CPT PV. Then press + 5000 =. Then press PV, 5 N, CPT FV to see the answer. On the HP12C, press 3 n, 8 i, 2000 FV, 0 PMT, CPT PV. Then press 5000 +. Then press PV, 5 n, FV to see the answer. Make sure the BAII Plus has the P/Y value set to 1.






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