Quant Help

Hi Quant is my worst section and I am really struggling with it… I am happy with all other sections… I am doig final review Can anyone pls tell me what a good strategy would be for retention… Which parts are likely to come up more than others? Any advice would be greatly appreciated

focus on chapter 5 and 6 especially, then have a working understanding on hypoth, confidence intervals, standard errors, z-scores, t-stats, when to use, why, what about if variance isn’t/is known, sample small/large , normal/non-normal, plus some basic stuff like what is paramter. there weren’t any z-tables or anything in the mocks so could guess we won’t be asked to look one up

Thanks Chap 5 common probability and 6 sampling? I am good with time value of money npv and irr… having a real bad day I think if I dont get the quant I will fail the exam Thanks for the advice!!

yeah quant bites big time. there’s no easy way around it though and its a HUGE part of the exam so can’t say what parts are likely to come up vs. others. nicob hit it as far as what topics to work on. Set aside the time to understand these, there’s a lot of conceptual questions about items that will seem like details when you first encounter them. the definitions have hurt me - simple things like RANGE - c’mon! not sure what kind of time you have but its worth going through the cfa text problems. if you have qbank do all the session review quizzes and as many problems as you can. Don’t ignore the definitions! maybe glance over the bold items and check your knowledge on these. I had to spend almost two weeks on quant review. hunkered down with friggin’ hypo testing. I know you don’t have that much time - just use your time wisely and reduce the shortcuts with this massive section. Good luck - post questions here, we’ll help. there’s a couple of good threads on hypothesis testing. also try searching on youtube for free videos that will help you visualize these irritating concepts.

From my experience in December 08, the quants was nearly ALL qualitative. i.e. when to use z vs t stat lognormal distribution Nominal vs Ordinal vs Interval vs Ratio continuous vs discrete with examples AND DEFINITELY type 1 and type 2 errors These are some things you NEEEED to know goodluck

Thanks so much guys… I feel so much better now. I will jut hit qbank on these topics… Thanks again really appreciate it…

I agree with esco- most of what I’ve seen in review questions is qualitative-worst case is you have to calculate a confidence interval. Make sure you know that 1 standard deviation is roughly 68%, and two standard deviations from the mean is roughly 95%. Therefore you know that there is a 68% chance the value will fall between mean plus/minus 1 standard deviations., and 95% with two standard deviations. Example: Mean= 20 Standard Deviation= 10 68% of observations fall between 10 and 30 (20-10 and 20+10) 95% of observations fall between zero and 40 (20- (2*10) and 20+ (2*10) Besides questions like this, it’s all qualitative.

great thread…I am trying to review quant now also…did horribly in the last few tests on quant…

permutation formula when order matters. n!/(n-r)! ARGGGG.

In the little time we have and the great advice… Review end of chapter schweser for all important topics ie probablilty review qbank and ensure you understand why and how. go to sample cfa/mocks to see difference in questions… Go to schweser book 6 and go through qs. I have done this for probability concepts in like 3 hours… I have to admit that book 6 throws me as it goes into so much detail. Either way I feel better that I may score higher in quant now with a more structured approach as opposed to trying to learn everything. Similar concepts come up… Give it your best shot…

From a level II’er - I echo those saying to focus on the qualitative stuff. You’ll be amazed how on a topic called quantitative methods, how little you use your calculator. Really focus in on definitional stuff, rather then number crunching.

I can see (and have seen) about 20 possible questions that can come from two concepts: type I vs. type II errors & z vs. t: Type I error: the probability of rejecting a true null Type II error: the probability of failing to reject a false null ALPHA: measures type I error BETA: measures type II error POWER OF TEST: one minus beta so an example of a question might be - “The probability of failing to reject a false null is 7%; Alpha is 5%; what is the power of the test?” - you don’t need alpha in this case and power of the test will be 1 - .07 = 93% FOR NORMAL DISTRIBUTIONS: w/ KNOWN population variance - use Z-Statistic (for SMALL or LARGE samples) w/ UNknown pop variance - use t-statistic (for SMALL or LARGE samples) *can also use z for UNknown pop variance but t is MORE CONSERVATIVE FOR NonNORMAL DISTRIBUTIONS: w/ small SAMPLE sizes - CAN’T use either don’t care if pop variance is known or not known w/ LARGE Sample sizes - w/ KNOWN pop variance use Z-statistic, w/ UNknown pop variance use t-statistic Write these charts out on your own in the best way that works for you. **PLEASE someone check me since I’ve written this off the top of my head (and for my own practice!) and for bonus: MWR = IRR (highly sensitive to timing/cash flows) TWR = preferred method (removes the effect of timing/cash flows) me right now = going nuts

This may sound simplistic but learn to draw some of the questions out. They count on you to try to memorize the equations Im sure so they will have different answers using different equations. Learn to draw a probability tree for dependent probabilities with the right probabilities at the nodes and ends. Also learn to contruct matrices with X and Y on either axis when doing probabilities and covariance. Learn to draw the normal curve and mark it with the mean, and 1, 1.65, 2 standard deviations away from the mean. I have done a ton of quant in grad and undergrad and some people “get” the equations, but drawing makes everything easier.

I am in need of help with Level II Quant Chapters 5 and 6. Does anyone have a good diagram (flow chart) that’s detailed which would help me? I’d really appreciate it.

Can you be a little more specific ?