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Free Questions › CFA › Quantitative Methods
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.
100% free · No login to startQuestion 1141
Bootstrap resampling draws samples:
Select an option first.
Correct answer: B — With replacement
Explanation: ✔ Why correct: Bootstrap requires sampling with replacement so observations can appear multiple times.
Question 1142
Monte Carlo simulation is especially useful when:
Select an option first.
Correct answer: B — The distribution of outcomes is complex
Explanation: ✔ Why correct: Monte Carlo handles complex, multi-factor, or nonlinear distributions.
Question 1143
A key difference between Monte Carlo and bootstrap is that Monte Carlo:
Select an option first.
Correct answer: B — Requires assumed probability distributions
Explanation: ✔ Why correct: Monte Carlo simulation draws from assumed distributions, not the sample.
Question 1144
Bootstrap resampling is particularly useful for estimating:
Select an option first.
Correct answer: B — Standard errors and sampling distributions
Explanation: ✔ Why correct: Bootstrap is widely used to estimate standard errors and sampling distributions when analytical formulas are unavailable.
Question 1145
Probability sampling is preferred because it:
Select an option first.
Correct answer: B — Gives every population member a known chance of selection
Explanation: ✔ Why correct: Probability sampling ensures each member has a known, non-zero chance of being selected, making the sample more representative.
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Question 1146
A simple random sample is one in which:
Select an option first.
Correct answer: B — Each population element has an equal probability of selection
Explanation: ✔ Why correct: Equal probability of selection defines simple random sampling.
Question 1147
Simple random sampling is most appropriate when:
Select an option first.
Correct answer: A — The population is homogeneous
Explanation: ✔ Why correct: Simple random sampling works best when population characteristics are broadly similar.
Question 1148
Systematic sampling selects:
Select an option first.
Correct answer: A — Every kth member of the population
Explanation: ✔ Why correct: Systematic sampling selects every kth element after a random start.
Question 1149
Sampling error is:
Select an option first.
Correct answer: B — The difference between a sample statistic and the population parameter
Explanation: ✔ Why correct: Sampling error arises because a sample is only a subset of the population.
Question 1150
A sample statistic is a random variable because:
Select an option first.
Correct answer: A — It changes depending on which sample is drawn
Explanation: ✔ Why correct: Different samples produce different sample statistics.
Question 1151
The sampling distribution of a statistic refers to:
Select an option first.
Correct answer: B — The distribution of all possible values of the statistic across repeated samples
Explanation: ✔ Why correct: Sampling distribution = distribution of a statistic across repeated samples.
Question 1152
Stratified random sampling is preferred when:
Select an option first.
Correct answer: B — Subgroups of interest must be represented
Explanation: ✔ Why correct: Stratified sampling ensures proportional representation of key subgroups.
Question 1153
A key advantage of stratified random sampling is that it:
Select an option first.
Correct answer: B — Guarantees representation of important subgroups
Explanation: ✔ Why correct: Stratified sampling ensures each subgroup is included proportionally.
Question 1154
Cluster sampling differs from stratified sampling because cluster sampling:
Select an option first.
Correct answer: B — Assumes each cluster is a mini-population
Explanation: ✔ Why correct: Clusters are assumed to be representative of the entire population.
Question 1155
In one-stage cluster sampling:
Select an option first.
Correct answer: B — All elements in selected clusters are sampled
Explanation: ✔ Why correct: One-stage cluster sampling includes all members of selected clusters.
Question 1156
In two-stage cluster sampling:
Select an option first.
Correct answer: B — A subsample is drawn from each selected cluster
Explanation: ✔ Why correct: Two-stage sampling selects clusters, then samples within them.
Question 1157
Convenience sampling is best described as:
Select an option first.
Correct answer: B — A method based on ease of access
Explanation: ✔ Why correct: Convenience sampling selects elements based on accessibility.
Question 1158
Judgmental sampling is appropriate when:
Select an option first.
Correct answer: A — The researcher has expertise that improves sample selection
Explanation: ✔ Why correct: Judgmental sampling leverages expert insight to select meaningful observations.
Question 1159
A major drawback of judgmental sampling is that it:
Select an option first.
Correct answer: B — Introduces researcher bias
Explanation: ✔ Why correct: Judgmental sampling is vulnerable to subjective bias.
Question 1160
The central limit theorem states that the sampling distribution of the sample mean:
Select an option first.
Correct answer: B — Approaches normality as sample size increases
Explanation: ✔ Why correct: CLT ensures approximate normality for large samples, regardless of population shape (with finite variance).
Question 1161
The central limit theorem applies when:
Select an option first.
Correct answer: B — The sample size is sufficiently large
Explanation: ✔ Why correct: A sufficiently large random sample is the key requirement for CLT.
Question 1162
Bootstrap resampling draws samples:
Select an option first.
Correct answer: B — With replacement
Explanation: ✔ Why correct: Bootstrap resamples the observed data with replacement.
Question 1163
Bootstrap resampling is used to estimate:
Select an option first.
Correct answer: B — Standard errors and sampling distributions
Explanation: ✔ Why correct: Bootstrap approximates sampling distributions and standard errors when analytical formulas are unavailable.
Question 1164
Bootstrap differs from Monte Carlo simulation because bootstrap:
Select an option first.
Correct answer: B — Uses the observed sample as if it were the population
Explanation: ✔ Why correct: Bootstrap treats the sample as the population and resamples from it.
Question 1165
Jackknife resampling differs from bootstrap because jackknife:
Select an option first.
Correct answer: B — Removes one observation at a time
Explanation: ✔ Why correct: Jackknife systematically leaves out one observation at a time.
Question 1166
Jackknife resampling is particularly useful for:
Select an option first.
Correct answer: B — Reducing estimator bias
Explanation: ✔ Why correct: Jackknife is often used to reduce bias and estimate standard errors.
Question 1167
A key feature of jackknife resampling is that it:
Select an option first.
Correct answer: A — Produces identical results each run
Explanation: ✔ Why correct: Jackknife is deterministic—leaving out each observation in turn—so results are stable.
Question 1168
Cluster sampling is appropriate when:
Select an option first.
Correct answer: A — Clusters are representative mini-populations
Explanation: ✔ Why correct: Cluster sampling assumes each cluster reflects the overall population.
Question 1169
Compared with stratified sampling, cluster sampling typically:
Select an option first.
Correct answer: B — Produces higher variance
Explanation: ✔ Why correct: Because only some clusters are sampled, cluster sampling usually has higher variance.
Question 1170
Stratified sampling improves precision because:
Select an option first.
Correct answer: B — It reduces variance within each stratum
Explanation: ✔ Why correct: Grouping similar observations reduces within-stratum variance.
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