Quant TE5 Test

Q. Which of the following should be used to test the difference between the variances of two normally distributed populations?

• A. t-test
• B. F-test
• C. Paired comparisons test

• A. 48%.
• B. 24%.
• C. 16%.

Which of the following is most likely to be an explanation of the power of a test? The power of a test is the probability of:

• A. rejecting the null when it is false.
• B. not accepting the alternative when it is false.
• C. a Type I error.

Q. A portfolio manager annually outperforms her benchmark 60% of the time. Assuming independent annual trials, what is the probability that she will outperform her benchmark four or more times over the next five years?

• A. 0.26
• B. 0.34
• C. 0.48

Q. Published ratings on stocks ranging from 1 (strong sell) to 5 (strong buy) are examples of which measurement scale?

• A. Ordinal
• B. Continuous
• C. Nominal

Q. Himari Fukumoto has joined a new firm and is selecting mutual funds in the firm’s pension plan. If 10 mutual funds are available, and she plans to select four, how many different sets of mutual funds can she choose?

• A. 210 .
• B. 720 .
• C. 5,040 .

• A. 11.340 to 12.660.
• B. 11.216 to 12.784.
• C. 4.160 to 19.840.

Q. The probability of correctly rejecting the null hypothesis is the:

• A. p-value.
• B. power of a test.
• C. level of significance.

• A. Test 1 only
• B. Test 2 only
• C. Both Test 1 and Test 2

The joint probability of events A and B is 32%, with the probability of event A being 60% and the probability of event B being 50%. On the basis of this information, the conditional probability of event A given that event B occurs is closest to:

• A. 53.3%.
• B. 30.0%.
• C. 64.0%.