Actually, if this is just a simple regression isn’t it just n-1 for the DF? It wouldn’t matter in this case because n is so big, but for the concept.
That formula is giving me a shock of my life!!! where has that alien come from… It was nowhere in Schweser
MCPass- you say page 261 and 262 of the CFAI book? I’m there and I’m seeing measures of central tendency on the mode. What CFA book? I’m looking at the quant book.
Yep, it’s a standard error of the forecast question… When finding a prediction interval for the dependent variable, you have to do an extra adjustment, as opposed to just finding a “regular” interval for a random variable. See pg. 252
I’m glad I’m not the only one… I studied Quant from the Schweser book but since I cannot figure out lots of questions I see here I decided to take the real thing. This formula scared me to death and I have no idea where it’s coming from. Since I suspect CFA to be scanning Schweser/Stalla for stuff they don’t cover very well I’m VERY interested in getting to know more about this one because they may want to include it in the exam to sponsor those who studied from the CFAI books.
Sorry for my above question. I pulled the L1 book Quant vs. the L2. My bad. Holy crap I’d never seen that equation on page 252.
Schweser goes over this formula on page 155 if that helps anyone.
Dimes27 Wrote: ------------------------------------------------------- > Yep, it’s a standard error of the forecast > question… When finding a prediction interval for > the dependent variable, you have to do an extra > adjustment, as opposed to just finding a “regular” > interval for a random variable. > > See pg. 252 Sorry about that dimes. What I said above was right, you do use standard error of the estimate on the Y var, but I didnt think that this was one of those (I haven’t seen the question).
There is a little shortcut to these…see if you can figure it out based on the equation.
you’re breaking my balls here mwvt9…
Let me look for the thread that lays it out.
http://www.analystforum.com/phorums/read.php?12,680993,681138#msg-681138 Check out the thread…props to maratikus.
You guys (and gals) are great.
mcpass Wrote: ------------------------------------------------------- > I’m glad I’m not the only one… I studied Quant > from the Schweser book but since I cannot figure > out lots of questions I see here I decided to take > the real thing. > > This formula scared me to death and I have no idea > where it’s coming from. Since I suspect CFA to be > scanning Schweser/Stalla for stuff they don’t > cover very well I’m VERY interested in getting to > know more about this one because they may want to > include it in the exam to sponsor those who > studied from the CFAI books. I ran into this problem earlier today and had didn’t recognize that formula either. As for your theory on Scheser/Stall deficiencies and the test writers taking advantage of them, I don’t think that’s the case. I was told by Schweser’s L2 director that the CFAI is already writing the questions for 2009. If that’s true, CFAI has no idea what Scheser/Stalla have not put in their text when they are writing the exam questions.