Two tailed t test as supposed to Chi…?

That’s what I said.

definitely 2 tailed t test

correlation is a two tailed t

Weren’t they testing something is less than or greater than something? That would mean one tailed test? They didn’t test whether something was equal or not.

They threw a #@$$#@ econ question there too. What is the theory they are talking about exchange rates and inflation. PPP

cfa, there was another question that was testing <>, this one was testing correlation

I was so annoyed with the lack of quant questions. Quant is my strength and I thought I had mastered the time series portion. We ended up getting 5 questions, not even 6, cos the first was econ!!! WTF?!

I put PPP

tcasperite Wrote: ------------------------------------------------------- > I put PPP +1 for me!

answer was relative PPP

-1 for me. it didn’t ask interest rates and inflation? i put intl fisher. oh well. i suck at quant or econ masked as quant. was glad to only see 1 item set.

i put foreign exchange expectation, relative ppp links inflation and fx rates

jpm351 Wrote: ------------------------------------------------------- > i put foreign exchange expectation, relative ppp > links inflation and fx rates was inflation and exchange rates exactly what the independent variables represented? foreign exchange expectation relation has to do with forward rates which is related to interest rate parity

The words that made me think Relative PPP was that they specifically sated the long term effects. Relative PPP doesn’t hold short term, but should on the long term.


I thought (or maybe hope) they only asked about inflation and exchange so I put PPP.

I went with PPP. Kicked around Fischer.

Fischer is Interest rates and Inflation PPP is inflation and exchange rates PPP is it

Int’l fischer doesn’t have anything to do with exchange rates though (not directly anyways). PPP is the direct relationship between Exch rates and inflation