20 Questions
| Total Attempts: 3730

Questions and Answers

- 1.
- A.
5%

- B.
2.5%

- C.
95%

- 2.
- A.
The mean is larger than the median

- B.
The tail of the distribution is to the right

- C.
All of these answers are correct

- 3.If you deposit $250 a month, beginning next month, for 20 years into an account paying 7% per year, compounded monthly, how much is in your account after that last deposit?
- A.
$58,205.58

- B.
$308,663.09

- C.
$130,231.66

- 4.If you need $25,000 in 10 years, how much must you deposit today, if your money will earn 6% per year, compounded annually?
- A.
$25,000

- B.
$13,959.87

- C.
$2,320.01

- 5.Suppose you are modelling long-term interest rates, and you believe that supply of corporate debt is a major contributing factor. Suppose you believe that the probability that rates will rise if supply of corporate debt rises is 60%; if the supply of corporate debt stays constant, you believe that there is a 35% chance of increasing interest rates; if the supply of corporate debt falls, you believe that there is a 5% chance of rates increasing. You think that the likelihood of corporate debt increasing is 50%; of staying the same is 40%; of dropping is 10%. What is the unconditional probability of interest rates rising?
- A.
55.4%

- B.
44.5

- C.
55.5

- 6.Specify the region for the p-statistic which will lead to the rejection of the null at the 80% significance level.
- A.
Z-statistic < -0.84

- B.
Z-statistic > +1.19

- C.
Z-statistic < -1.35 or z-statistic > +1.35

- 7.
- A.
0.250 and 0.350

- B.
0.268 and 0.332

- C.
0.950 and 0.997

- 8.What annual interest rate, compounded annually, would cause a series of 10 deposits of $500 to accumulate to $9,000, if the first deposit is made one year from today?
- A.
12.52%

- B.
15.38%

- C.
11.12%

- 9.You have invested in a long-term, fixed deposit account earning 4% per year for 20 years, compounded annually. Your friend has invested in a similar account but one that earns 4.25% per year, compounded semi-annually. If each of you deposited $5,000, by what amount is your friend wealthier than you due to this deposit?
- A.
$538

- B.
$601

- C.
$639

- 10.You are examining a group of 6 companies. Their average profit margins have been 49%, 10%, 5%, 35%, 30%, and 30%. What is the range of profit margins?
- A.
49.0%

- B.
30.0%

- C.
44.0%

- 11.If the hypothesized value of a parameter under the null hypothesis lies outside the confidence interval, the null hypothesis:
- A.
Cannot be rejected at the corresponding significance level

- B.
Should be rejected at the corresponding significance level

- C.
None of these answers

- 12.What sample statistic is used to estimate a population value?
- A.
Point estimate

- B.
Parameter

- C.
Interval estimate

- 13.What is the area under the normal curve for z > 1.79?
- A.
0.4633

- B.
0.9599

- C.
0.0367

- 14.Type I error refers to the event that we will:
- A.
Reject the null when it is true

- B.
Fail to reject the null when it is false

- C.
Reject the alternative when it is true

- 15.You are faced with a counting problem in which you must choose k objects from n total objects. The order of choosing does not matter. The counting method you should use is:
- A.
The binomial formula

- B.
The multinomial formula

- C.
The multiplication rule

- 16.In a statistical regression estimation, the R-square is found to be 39% and the slope coefficient is -0.3. The percentage of variance of the dependent variable not explained equals ________.
- A.
0.30

- B.
0.61

- C.
0.09

- 17.A bell-shaped, symmetrical frequency distribution has a mean of 10. If 16% of the observations in the distribution are negative, what is the coefficient of variation of X?
- A.
1.0

- B.
0.32

- C.
10.0

- 18.
- A.
About 4

- B.
About 40

- C.
None of these answers

- 19.
- A.
0.0164

- B.
0.0001

- C.
None of these answers

- 20.The semiannually compounded rate is 10% quoted on an annualized basis. The equivalent annually compounded rate is:
- A.
10.5%

- B.
9.65%

- C.
10.1%