What to know
Identify the rule, formula, or decision criterion before reading the answer choices. CFA Level I distractors often use the right vocabulary with the wrong condition.
Quantitative Methods
Estimation and Inference practice questions
Estimation and Inference is part of CFA Level I Quantitative Methods. Quantitative Methods questions emphasize time value of money, probability, sampling, hypothesis testing, regression, and return statistics. Use this page to review the controlling ideas, then work through 9 questions with answer explanations and common traps.
Review the worked explanations before moving into adaptive practice. The app version can mix this topic with due reviews and weak related concepts.
Practice this topicHow to practice
Work each item under time pressure, then compare your reasoning with the step-by-step explanation and key takeaway.
Review signal
Missed questions should become scheduled reviews when the error comes from a concept gap, formula setup, or answer-choice trap.
Quantitative Methods
Estimation and Inference
The population mean return is best described as a:
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Estimation and Inference
The standard error of the sample mean is calculated as:
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Estimation and Inference
Dividing a population into industry groups and randomly sampling from each group is best described as:
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Estimation and Inference
The central limit theorem most directly supports the conclusion that, for large samples, the sample mean:
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Estimation and Inference
A sample of 36 funds has mean excess return 6% and sample standard deviation 12%. Using 1.96 as the reliability factor, the approximate 95% confidence interval for the population mean is:
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Estimation and Inference
A survey of investors is posted only to a brokerage firm website and completed voluntarily. The sampling method is most likely:
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Estimation and Inference
If the sample size is quadrupled while the sample standard deviation remains unchanged, the standard error of the sample mean:
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Estimation and Inference
A jackknife procedure differs from a bootstrap procedure because the jackknife most commonly:
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Estimation and Inference
An analyst estimates the mean return from 25 monthly observations and reports the sample standard deviation as the uncertainty of the estimated mean. The most likely error is:
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