CFA Level 1 Quantitative Methods Terms/Learning topics

What is a contingency table - summarizes data for 2 or more categorical variables

summarizes data for 2 or more categorical variables

What is Relative Frequency

%'age of observations per value of the variable

What are the ways data can be described and ordered

1) Cross Sectional - multiple observations of a particular variable such as the stock price of 60 companies 2) Time-Series - multiple observations of a particular variable for the same observational time such as GM's stock price over the last 60 years 3) Panel Data - It is both Cross-Sectional Data and Time-Series Data combined.

How to select among certain visualization data types

1) Histogram & Frequency Polygon - Represent the distribution of numerical data 2) Bar Chart - represent the frequency distribution of categorial data 3) Tree-Map - represent groups by %'age of area 4) Line Chart - Used to visualize ordered observation typically for time-series data 5) Scatter plot - used to visualize the joint variation in 2 numerical values

What is Data?

A collection of numbers, characters, words or text that represent facts or information

How to you use frequency for numerical data

Create non-overlapping intervals 1) Sort data in ascending order 2) Find the Range: Max-Min 3) Decide on the number of intervals (k) 4) interval width = range/k

What is Categorical Data

Qualitative Data that describes a quality or characteristic. a) Can be Nominal meaning having no logical order b) Can be Ordinal which means it has a order or rank

What is Numerical Data

Quantitative Data that can be measured or counted. a) Can be Discrete meaning having a limited to a finite number of values b) Can be continuous which means it can take on any value within a range

What is Absolute Frequency

actual number of observations in a given interval