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Basic Question 0 of 27
Mileage tests were conducted on a randomly selected sample of 100 newly developed automobile tires. The average tread wear was found to be 50,000 miles with a standard deviation of 3,500 miles. What is the best estimate of the average tread life, in miles, for the entire population of these tires?
B. (3,500/100)
C. (50,000/100)
A. 50,000
B. (3,500/100)
C. (50,000/100)
User Contributed Comments 5
| User | Comment |
|---|---|
| 8thlegend | I spent 10 mins figuring out how to do this. Then i realized that this was the first question and wasted 10 mins of my life. |
| thekid | 8thlegend---> 10minutes + the time it took you to post up your comment in regards to this "first question" lol..i'm going insane. |
| Ktrain | 10 minutes + the 250 hours studying for this test |
| 2014 | Sample represents population, The purpose of picking up sample serves the estimation of same results. U cannot do research on entire population of tyres. So u have selected a sample. Now, sample results u would rely to predict information. There is no choice or this is best choice to estimate |
| JMORALES | haha |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe the structure of an autoregressive (AR) model of order p and calculate one- and two-period-ahead forecasts given the estimated coefficients;
explain how autocorrelations of the residuals can be used to test whether the autoregressive model fits the time series;
explain mean reversion and calculate a mean-reverting level;
contrast in-sample and out-of-sample forecasts and compare the forecasting accuracy of different time-series models based on the root mean squared error criterion;
CFA® 2025 Level II Curriculum, Volume 1, Module 5.