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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 121

A model that performs well in one period but poorly in another may suffer from:

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Question 122

Text data is considered:

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Question 123

A linear trend model assumes that a variable increases by a constant amount each period. This implies the variable grows at:

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Question 124

A log‑linear trend model is most appropriate when the data show:

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Question 125

If a variable grows at a constant percentage rate, its natural log will appear:

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Question 126

A high R² in a trend model mainly indicates:

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Question 127

A log‑linear model predicts future values by:

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Question 128

If the trend coefficient in a log‑linear model is 0.03, the approximate growth rate per period is:

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Question 129

A linear trend model is likely inappropriate if the data show:

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Question 130

A log‑linear model is preferred when the variable:

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Question 131

A Durbin‑Watson value far below 2 suggests:

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Question 132

If errors are positively serially correlated, forecasts tend to be:

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Question 133

A key limitation of trend models is that they often produce:

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Question 134

Durbin‑Watson cannot be used when the model includes:

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Question 135

If DW is significantly below the lower critical value, we:

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Question 136

Serial correlation in trend models suggests:

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Question 137

A DW value near 2 indicates:

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Question 138

A stationary time series must have:

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Question 139

A time series with a strong upward trend is:

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Question 140

Using an AR model on a non‑stationary series leads to:

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Question 141

A stationary series has autocovariances that:

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Question 142

A series with strong seasonality is usually:

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Question 143

An AR(1) model predicts the current value using:

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Question 144

In an AR(1) model, the lag coefficient must be less than 1 in absolute value to ensure:

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Question 145

If the lag coefficient in an AR(1) model is 0.9, the series:

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Question 146

The intercept in an AR(1) model helps determine:

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Question 147

AR models are appropriate when:

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Question 148

Residual autocorrelation is tested by comparing the autocorrelation to:

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Question 149

If residual autocorrelations are significantly different from zero, the model is:

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Question 150

The standard error of an estimated autocorrelation is approximately:

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Free CFA Quantitative Methods Practice Questions & Answers

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