Quant TE9 Test2

Q. For a sample size of 65 with a mean of 31 taken from a normally distributed population with a variance of 529, a 99% confidence interval for the population mean will have a lower limit closest to:

• A. 23.64.
• B. 25.41.
• C. 30.09.

Q. A tree-map is best suited to illustrate:

• A. underlying trends over time.
• B. joint variations in two variables.
• C. value differences of categorical groups.

Q. Which probability estimate most likely varies greatly between people?

• A. An a priori probability
• B. An empirical probability
• C. A subjective probability

None

• A. $22,819 .
• B. $27,763 .
• C. $28,873 .

Q. The total number of parameters that fully characterizes a multivariate normal distribution for the returns on two stocks is:

• A. 3 .
• B. 4 .
• C. 5 .

The value of a test statistic is best determined as the difference between the sample statistic and the value of the population parameter under H0 divided by the:

• A. appropriate value from the t-distribution.
• B. sample standard deviation.
• C. standard error of the sample statistic.

Q. Which of the following statements is most accurate? If the covariance of returns between two assets is 0.0023, then:

• A. the assets’ risk is near zero.
• B. the asset returns are unrelated.
• C. the asset returns have a positive relationship.

Q. If the probability that Zolaf Company sales exceed last year’s sales is 0.167, the odds for exceeding sales are closest to:

• A. 1 to 5.
• B. 1 to 6.
• C. 5 to 1.

None

• A. 0.250.
• B. 0.333.
• C. 0.583.

None

• A. 33%.
• B. 41%.
• C. 59%.