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Free CFA Quantitative Methods Practice Questions & Answers

1,200 exam-style Quantitative Methods questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.

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Question 31

The F-test in multiple regression is used to test:

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Question 32

A statistically significant F-statistic suggests:

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Question 33

A t-statistic for a slope coefficient tests:

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Question 34

A low p-value (e.g., below 0.05) for a slope coefficient typically indicates:

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Question 35

When using a regression model for forecasting, a key concern is:

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Question 36

Confidence intervals for regression coefficients provide:

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Question 37

A residual plot that shows no clear pattern suggests:

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Question 38

Forecast intervals (prediction intervals) are generally:

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Question 39

The assumption of linearity in regression means:

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Question 40

Homoskedasticity means:

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Question 41

Heteroskedasticity is a problem because it:

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Question 42

A common visual way to detect heteroskedasticity is to:

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Question 43

Serial correlation (autocorrelation) in residuals is most often a concern in:

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Question 44

Serial correlation means:

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Question 45

A consequence of positive serial correlation in residuals is that:

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Question 46

Multicollinearity refers to:

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Question 47

A symptom of multicollinearity is:

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Question 48

One way to reduce multicollinearity is to:

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Question 49

A model is “misspecified” when:

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Question 50

Omitting a relevant variable that is correlated with included variables can:

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Question 51

Including an irrelevant variable (one that has no real effect) typically:

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Question 52

A non-linear relationship between (Y) and an independent variable can sometimes be handled by:

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Question 53

Independence of errors means:

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Question 54

Normality of errors is mainly important for:

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Question 55

A common test for serial correlation in residuals is:

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Question 56

A dummy variable that equals 1 for “technology firms” and 0 otherwise allows the model to:

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Question 57

When using dummy variables for a category with (k) groups, a common rule is to:

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Question 58

The “dummy variable trap” refers to:

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Question 59

In a regression with a dummy variable for “crisis period” (1 during crisis, 0 otherwise), the coefficient on the dummy measures:

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Question 60

Logistic regression is most appropriate when the dependent variable is:

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Free CFA Quantitative Methods Practice Questions & Answers

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