A set of observations ordered over time

A set of unordered cross-sectional observations

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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 721

The “dummy variable trap” refers to:

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Question 722

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 723

Logistic regression is most appropriate when the dependent variable is:

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Question 724

In logistic regression, the model estimates:

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Question 725

A common use of logistic regression in finance is to:

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Question 726

In logistic regression, the dependent variable is often coded as:

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Question 727

A time series is:

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Question 728

A linear trend model for a time series typically includes:

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Question 729

A log-linear trend model is often used when:

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Question 730

A covariance-stationary time series has:

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Question 731

An autoregressive (AR) model explains the current value of a series using:

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Question 732

In an AR(1) model, the current value depends on:

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Question 733

Mean reversion in a time series means:

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Question 734

A random walk is a time series where:

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Question 735

A unit root in a time series indicates:

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Question 736

A moving average (MA) model uses:

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Question 737

A simple moving average forecast of order (n) is:

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Question 738

Seasonality in a time series refers to:

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Question 739

A common way to model seasonality is to:

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Question 740

Comparing forecast models often involves:

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Question 741

Instability of regression coefficients over time suggests:

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Question 742

Unsupervised learning is used to:

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Question 743

K-nearest neighbors (KNN) classifies an observation based on:

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Question 744

Support vector machines (SVM) aim to:

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Question 745

Clustering algorithms (like k-means) are used to:

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Question 746

Unstructured data in finance often includes:

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Question 747

Data cleaning (or preparation) commonly involves:

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Question 748

Model evaluation in a data project typically involves:

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Question 749

A regression coefficient is statistically significant when:

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Question 750

A negative slope coefficient means:

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Free CFA Quantitative Methods Practice Questions & Answers

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