# CFA Level 1 Probability

Hi Guys, I desperately need some help on Quantative Finance, expecially probability. I have read all the Schweser notes and solved all problems behind each chapter. When i solve questions behind individual chapters, i tend to do reasonably well, but i am doing not so well on the QBank Probability questions. Although i can retain the formulas in memory for a few days, i tend to forget some of them when i move onto other topics. As i have no background in Finance/Accounting, i am finding it a little hard digesting Common Probability Distributions, Sample Distributions/Estimation and Hyphothesis testing. Any tips on how i can overcome this?? Given i have 7 weeks for the June exam, it is advisable to focus more on the material or just solve questions. I am beginning to realise the sheer amount of information that must be retrained in memory for the exam is surely not easy. I intend to solve all QBank questions for all topics and also intend to solve 4 Schweser exam papers. Any guidance/tips will be extremely useful.

Post a question that you have and read how others solve it. The test is more about solving the problems than knowing ALL the written material. Let me ask you a few questions: Don’t look at your notes… Do you know the difference between Type I and Type II Errors? For a non-normal distribution with a known variance, what test statistic would you LEAST LIKELY use? I.)z-statistic II.)t-statistic III.)z-statistic and t-statistic What is MOST LIKELY a confidence interval for a standard normal distribution? a.) 69% be within one standard deviations of the mean b.) 96% be within two standard deviations of the mean d.) 99% be within four standard deviations of the mean c.) 95% be within two standard deviations of the mean These questions should take you no more than a minute? If not, memorize those tables…

I have been solving tons of questions from the Qbank and intend to solve all of them Answer 1 is t-statistic. Answer 2 is 95%. (not too sure about this answer and need to memorise these tables)

Hi mdalal, there are several ways to overcome your problem: - try to solve as many problems as possible, you will understand more and more by doing this, - confer the Schweser lecture notes again, - confer any university book on statistics, - confer our lecture notes. Best wishes, Daniel www.financial-exam.com