Free CFA-Level-I Exam Braindumps (page: 224)

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Which is true for a binomial distribution?

  1. All of these answers are correct
  2. Value of p is equal to 1.50
  3. Probability of success remains the same from trial to trial
  4. There are three or more possible outcomes
  5. None of these answers are correct

Answer(s): C

Explanation:

The probability of success is a constant in a binomial distribution.



What annual interest rate, compounded annually, will cause an original deposit of $400 to grow to $625, after 7 years?

  1. 8.57%
  2. 6.58%
  3. 7.27%
  4. 6.14%
  5. 5.78%

Answer(s): B

Explanation:

On the BAII Plus, press 7 N, 400 PV, 0 PMT, 625 +/- FV, then CPT I/Y. On the HP12C, press 7 n, 400 PV, 0 PMT, 625 CHS FV, then press i. Make sure the BAII Plus has the P/Y value set to 1.



Given the following points: (-2, 0), (-1,0), (0,1), (1, 1) and (2, 3) What is the critical value necessary to determine a confidence interval for a 95% level of confidence?

  1. 2.776
  2. None of these answers
  3. 3.182
  4. 2.132
  5. 2.353

Answer(s): C

Explanation:

Look at the t tables for n-2 degrees of freedom at the 5% level. Here, we look for a two tailed test with 5-2 = 3 degrees of freedom. This is 3.182.



The net incomes of a sample of importers were organized into the following table:

Net Income (in $ millions) Number of Importers
2 - 41
5 - 74
8 - 1010
11 - 133
14 - 162

What is the mean net income?

  1. None of these answers
  2. $7.65 million
  3. $14.2 million
  4. $9.15 million
  5. $9.00 million

Answer(s): D

Explanation:

(3*1)+(6*4)+(9*10)+(12*3)+(15*2) = 183. Mean is 183/20 = 9.15






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