Greetings, Hope everyone is doing great. I just completed Vol 1 of Level 1 for Dec 08. I had a question about values for the 95% Confidence level for a 1 tailed and 2 tailed test . are we supposed to remember those values ? Like for 90% , 95% and 99%. I keep getting mixed up with them esp when its for 1 tailed versus 2 tailed. Is there a pattern to remember it or can we compute it instead from the Normal Dist tables ? Finally, should one expect problems on the Spearman Rank coefficient (Reading in Hypothesis testing. )

expect anything on the exam …

Absolutely you have to remember that. no table was given during exam

this time there was only one question that required use of z-value, and 1.65 value was given in the question. No tables were provided though.

As a thumb rule, we need to remember values for 68, 90, 95, 99%. I reckon that if CFAI decide to give some other confidence interval, it would provide the values as well.

If you can’t remember 4 numbers, you don’t deserve to be a CFA Charterholder… Having said that, I’ve forgotten those numbers already (ha ha)… oops

I’m sure if you know how to compute Spearman (rank data, calculate Pearson on ranks) and when it might be more useful than Pearson (when the data are not bivariate normal and/or with significant outliers) that would be plenty.

i just sat for L1 and i have no idea what you’re talking about with Spearman and Pearson

Pearson = usual correlation coefficient Spearman = correlation with ranked data. Gotten big in finance literature because copulas have gotten big and the Spearman correlation coefficient is the first example in every beginning article ever written about copulas. Edit: For fun, do google search on Spearman copula

did copula direct the godfather?

Yes and then went into the mid-market wine business.

i stole glasses from his winery. it has a pretty cool museum if you ever have the chance to go