quant 6-11 notes

For a test of independence based on contingency table data, the test statistic is calculated as the: A) sum of squared differences between each table cell's actual value and its expected value, if the two characteristics are independent. B) sum of differences between each table cell's actual value and its expected value, if the two characteristics are independent. C) mean absolute deviation of all table cells' actual values and their expected values, if the two characteristics are independent

A

In a test of independence based on contingency table data, degrees of freedom are the: A) product of the number of rows minus one and the number of columns, minus one. B) sum of the number of rows and the number of columns. C) sum of the number of rows and the number of columns, minus two.

A

One of the major limitations of Monte Carlo simulation is that it: A) cannot provide the insight that analytic methods can. B) does not lend itself to performing "what if" scenarios. C) requires that variables be modeled using the normal distribution.

A

Selmer Jones has just inherited some money and wants to set some of it aside for a vacation in Hawaii one year from today. His bank will pay him 5% interest on any funds he deposits. In order to determine how much of the money must be set aside and held for the trip, he should use the 5% as a: A) discount rate. B) opportunity cost. C) required rate of return.

A

Which of the following statements about parametric and nonparametric tests is least accurate? A) Nonparametric tests rely on population parameters. B) The test of the mean of the differences is used when performing a paired comparison. C) The test of the difference in means is used when you are comparing means from two independent samples.

A

An analyst decides to select 10 stocks for her portfolio by placing the ticker symbols for all the stocks traded on the New York Stock Exchange in a large bowl. She randomly selects 20 stocks and will put every other one chosen into her 10-stock portfolio. The analyst used: A) dual random sampling. B) simple random sampling. C) stratified random sampling.

B

A test of independence based on contingency table data uses a(n): A) F-statistic. B) t-statistic. C) chi-square statistic.

C

If a one-tailed z-test uses a 5% significance level, the test will reject a: A) true null hypothesis 95% of the time. B) false null hypothesis 95% of the time. C) true null hypothesis 5% of the time

C

The central limit theorem concerns the sampling distribution of the: A) sample standard deviation. B) population mean. C) sample mean.

C

When resampling is done, the subsamples that are repeatedly drawn from the original observed samples will: A) progressively get smaller. B) progressively get larger. C) remain the same size.

C

Which of the following return measures is best described as purely representing time preference? A) Nominal risk-free interest rate. B) Total rate of return. C) Real risk-free interest rate.

C

Which technique for estimating the standard error of the sample mean involves calculating multiple means from the same sample, each with one observation removed from the sample? A) Sample variance. B) Bootstrap. C) Jackknife.

C