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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 691

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

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Question 692

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

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Question 693

Confidence intervals for regression coefficients provide:

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Question 694

A residual plot that shows no clear pattern suggests:

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Question 695

If a model has a very high (R^2) but nonsensical coefficients, this may indicate:

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Question 696

When comparing two models with the same dependent variable, a common approach is to:

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Question 697

Forecast intervals (prediction intervals) are generally:

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Question 698

The assumption of linearity in regression means:

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Question 699

Homoskedasticity means:

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Question 700

Heteroskedasticity is a problem because it:

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Question 701

A common visual way to detect heteroskedasticity is to:

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Question 702

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

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Question 703

Serial correlation means:

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Question 704

A consequence of positive serial correlation in residuals is that:

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Question 705

Multicollinearity refers to:

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Question 706

A symptom of multicollinearity is:

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Question 707

One way to reduce multicollinearity is to:

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Question 708

A model is “misspecified” when:

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Question 709

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

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Question 710

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

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Question 711

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

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Question 712

Independence of errors means:

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Question 713

Normality of errors is mainly important for:

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Question 714

A residual plot that shows a funnel shape (variance increasing with fitted values) suggests:

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Question 715

A common remedy for heteroskedasticity is to:

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Question 716

A common test for serial correlation in residuals is:

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Question 717

If residuals show a clear pattern over time, this suggests:

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Question 718

A dummy variable is typically used to represent:

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Question 719

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

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Question 720

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

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Free CFA Quantitative Methods Practice Questions & Answers

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Thank you