| Question 19 of 120. In a statistical regression estimation, the R-square is found to be 63% and the slope coefficient is 0.6. The correlation coefficient between the dependent and the independent variables is ________. |
| A. 0.60 |
| B. 0.63 |
| C. 0.79 |
| D. 0.24 |
Question 20 of 120.
| If the effective annual yield of the U.S. T-Bill is 4.75% and the U.S. T-Bill holding period yield is 0.0065, the corresponding U.S. T-Bill has ________ days until maturity. |
| A. 42 |
| B. 83 |
| C. 66 |
| D. 51 |
Question 21 of 120.
| According to Chebyshev's Theorem, what percent of the observations lie within plus and minus 1.75 standard deviations of the mean? |
| A. 56% |
| B. 95% |
| C. 67% |
| D. Cannot compute because it depends on the shape of the distribution |
Question 22 of 120.
| Events A and B are mutually exclusive. P(A) = 0.45, P(B) = 0.27. The probability of neither A nor B occurring equals ______. |
| A. 0.72 |
| B. 0.88 |
| C. 0.28 |
| D. 0.12 |
Question 23 of 120.
| The mean amount of gasoline and services charged by Key Refining Company credit customers is $70 per month. The distribution of amounts spent is approximately normal with a standard deviation of $10. What is the probability of selecting a credit card customer at random and finding the customer charged between $70 and $83? |
| A. 0.1962 |
| B. 0.4750 |
| C. 0.4032 |
| D. 0.3413 |
Question 24 of 120.
| Which of the following are true regarding the sample mean? I. The sample mean, x-bar, is equal to the population mean, μ. |
| A. I and II. |
| B. II and III. |
| C. I and III. |
| D. I, II and III. |
Question 25 of 120.
| An elderly couple invested in a conservative balanced fund is interested in knowing the range of possible returns. The balanced fund strategy in question has expected annual return of 5% with a standard deviation of 1%. The returns are thought to be normally distributed. What is the 99% confidence interval? |
| A. [2.63%, 7.38%]. |
| B. [2.73%, 7.28%]. |
| C. [2.53%, 7.48%]. |
| D. [2.43%, 7.58%]. |
Question 26 of 120.
| Which of the following is/are true? I. Type I error is the event in which we reject the null when it is false. |
| A. II only |
| B. I, II & III |
| C. II, III & IV |
| D. I, II & IV |
Question 27 of 120.
| What does a coefficient of correlation of 0.70 mean? |
| A. 70% of the variation in one variable is explained by the other |
| B. Coefficient of determination is 0.49 |
| C. Coefficient of nondetermination is 0.30 |
| D. None of these answers |
Question 28 of 120.
| What is the variable used to predict the value of another called? |
| A. Dependent |
| B. Independent |
| C. Correlation |
| D. Determination |
Question 29 of 120.
| An investment advertises its continuously compounded rate to be 11.63% on an annual basis. If the same were compounded quarterly what would be the equivalent rate? |
| A. 11.46% |
| B. 12.15% |
| C. 11.16% |
| D. 11.00% |
Question 30 of 120.
| A lognormal distribution is characterized by which of the following? |
| A. It is bounded by - ∞ at the lower end. |
| B. Natural log of a random variable is distributed normally. |
| C. It is bounded by 0 at the upper end. |
| D. It is bounded by 0 at the upper end and - ∞ at the lower end. |
Question 31 of 120.
| An analyst is testing for the variance of an index. His conjecture is that the index variance is 196. From a sample of 19 observations, he estimates the historical standard deviation to be 16. Based on the null hypothesis of equality can he accept the null at 5% alpha? What is the calculated statistic? |
| A. No, 15.75. |
| B. No, 28.87. |
| C. Yes, 23.51. |
| D. Yes, 13.78. |
Question 32 of 120.
| Jeremy Mansfield is saving for a down payment on a house. He can only set aside 400 a month over the next three years, starting immediately. However, he will buy a house after 5 years. How much money will Jeremy have for the down payment if he can earn 6.5% annually on his deposits? |
| A. 18,048 |
| B. 20,657 |
| C. 20,546 |
| D. 18,145 |
Question 33 of 120.
| Changes in the size of the federal deficit or surplus are often used to gauge whether fiscal policy is adding additional demand stimulas or imposing additional demand restraint. If we've noticed recently that the federal budget is shifting toward a deficit, we can conclude: |
| A. An expansionary fiscal policy is being implemented. |
| B. A restrictive fiscal policy is being implemented. |
| C. An expansionary monetary policy is being implemented. |
| D. We can conclude nothing about discretionary fiscal policy. |
Question 34 of 120.
| Which of the following events will increase GDP? |
| A. selling an antique writing desk for $500 cash. |
| B. losing $500 playing blackjack in your dorm. |
| C. the police department hiring an extra detective to track down the burglar who stole your stereo. |
| D. a burglar stealing your stereo, |
Question 35 of 120.
| If the intersection of aggregate demand and short-run aggregate supply is to the left of long-run aggregate supply, and there is no shift in aggregate demand, in the long run the resource prices will ____ and short-run aggregate supply will ____. |
| A. decrease, increase. |
| B. increase, decrease. |
| C. increase, increase. |
| D. decrease, decrease. |
Question 36 of 120.
| Which of the following factors is held constant when an economist constructs a demand schedule for a product? I. prices of complements and substitutes |
| A. I, II and III. |
| B. I and III. |
| C. II and III. |
| D. I and II. |