# Study Session 3: Quantitative Methods: Application

## Hypothesis Testing

I was reading Hypothesis Testing and didn’t get it at all. I also saw that in the Schweser notes they have mentioned that it is not to worry about the messy formulas and testing. I have wasted too much time wrapping it around my brain. And feel very frustrated because I am still not getting it.

## TMV - Drawing time lines during exam

Hey there. I’m wondering for those who have taken, and preferably passed, the level 1 exam if you were taking the time to draw time line graphs when solving TMV questions. With an average of a minute and a half per question, there is not much time to waste. However, I know drawing time lines is makes these questions easier and reduces mistakes.

Should I focus on learning how to do these questions strongly without having to draw them? Or does drawing them, in your opinion, actually make the questions shorter in duration for you?

## Probability Distributions - Quicker method?

Is there a quicker method to getting the correct answer?

The questions is easy but the time it takes to get the answer is long. (Took me 2:47 and that was using the STO/RCL functions on TI BA II Plus) Just curious. Thanks

P = .7 , N = 7, X = 4

Find probability of 4 or fewer successes.

The correct answer is 35.3 percent.

## Binomial Distribution (Wiley Study Guide)

https://drive.google.com/open?id=1psPdwdZlbPSkbwLzMWjz_3hIji0xgiO-

Can someone explain if the answer is 29% (which i believe to be correct) or .829%?

The last paragraph has confused me as making ‘exactly’ 3 sales is the same as making ‘only’ 3 sales, isnt it?

Thanks

## Solving for r - Help with equation

Hi - I am drawing a comlete blank.

I know I can do the steps to get the answer (6.91%) on calc but want to understand this please.

Solving for *r*,

$1,000 + $3,165/(1+r) = $25/(1+r) + $4,500/(1+r)^{2}

## One or two tailed test for t test

How do you determine to use a one tailed or two tailed level of signifigance? What in the question do you base this off of?

## null hypothesis

In the reading of 12.2, it says:

The null hypothesis is a proposition that is considered true unless the sample we use to conduct it gives convincing evidence it is false.

So why is this statement wrong:

The null hypothesis is the condition a researcher hopes to support?

## calculate mean, variance and stdev

I’m on the quantitative part, i got the TI BAII calculator. But i find it still hard/time consuming to get mean and stdev for a data series. Getting mean is fine, except lot of pressing. But to get the stdev/variance, you will need to keep a lot of intermediate result, and this takes a lot of time, e.g. one of the practice problems had 13 data points. So what is the best/fastest way to calculate those parameters?

## Suggestion for Quant

Hi,

So I am studying the Quants part now. TVM and IRR concepts are pretty clear and ok. But now when I have moved to Statistics, Probability etc it feels difficult to grasp. Maths was never my strong suite. So I would like to know how heavy in terms of wightage are these chapters in L1 and also in L2 and 3. Can I skip these and try to get some extra marks in some other topics?

Thanks.

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