I was wondering if we could use this to discuss specific questions from the 3 sample exams from Book 6.

Exam 3: PM Que 21 Following table summarizes the results of a poll taken of CFA charterholders and candidates regarding the importance of a continuing education after the CFA designation is obtained Group--------------------------In Favor of cont. education----------------------Against---- CFA Charterholders:-------------------235-------------------------------------------765---- CFA Candidates:-----------------------180-------------------------------------------820---- Given the information that a member of the group is in Favor of a continuing education requirement. what is the probability that she is a CFA candidate? A: 37% B: 43% C: 50% D: 57%

b) 43% Total in favor = 415 CFA Candidate = 180 180/415 = 43%

Question 21 - #45488 Your answer: B was incorrect. The correct answer was A) There are 415 members of the group in favor of the continuing education requirement. 180 of these are candidates, so the probability is 180 / 415 = 43.37%. Note that this question is quite similar to those where we apply Bayes?Theorem. The priors here are the probabilities that a member of the group is a charterholder or is a candidate. Both of these are 1,000 / 2,000 = 50%. Given the information that the member of the group favors continuing education, we can update the probability that that group member is a candidate to 43.37%.

Exam 3: PM Que 23 Which of the following statements about the common probability distributions is most likely correct? A: A probability distribution specifies the probabilities of the possible outcomes of a random variable. B: In a Binomial distribution, each observation has only two possible outcomes that are mutually exclusive. C: A discrete uniform distribution, the simplest of all probability distributions, is the distribution of equally likely outcomes. D: A normal distribution is a discrete symmeteric probability distribution that is completely described by two parameters: its mean & variance. I thought they all looked correct…

Exam 3: PM Que 23 Which of the following statements about the common probability distributions is most likely correct? A: A probability distribution specifies the probabilities of the possible outcomes of a random variable. B: In a Binomial distribution, each observation has only two possible outcomes that are mutually exclusive. C: A discrete uniform distribution, the simplest of all probability distributions, is the distribution of equally likely outcomes. D: A normal distribution is a discrete symmeteric probability distribution that is completely described by two parameters: its mean & variance. A does not sound right to me. B seems correct. D – normal is a continuous symmetric distribution – not discrete as mentioned. C – doesn’t seem right either. My choice / guess would be B. CP

A or B for me… I think B matches exactly with the definition for a Binomial Distribution, so I’ll go for B… Any suggestions? Thanks. Malek.

I would go for B too

Re. Exam 3: PM Que 21 , how do you get answer A? Can anyone expnain why (chances of CFA charterholder and infavour )/ (chance of anyone in favour) is not the way to do this? My sums are (0.5x180/1000) / (0.5x180/1000 + 0.5x235/1000) = 43%. Thanks, Andrew

Answer should be D: A normal distribution is a continuous symmetric probability distribution. For Q1. Answer is B…It is a typo from Schweser

It is asking for the most correct – on Q2. So since it says Normal is a discrete - distribution, which it is not – that would be wrong. My answer would still be B… binomial. (which is the most correct definition there).

c?

I think they may be asking which is most incorrect? Which is D.

@disptra…that was my initial thought when I read that question. I still think there was a typo in the question. I marked B as that seemed like the most correct choice, but the answer according schweser is D.

Exam 3: PM Que 21 Following table summarizes the results of a poll taken of CFA charterholders and candidates regarding the importance of a continuing education after the CFA designation is obtained Group--------------------------In Favor of cont. education----------------------Against---- CFA Charterholders:-------------------235-------------------------------------------765---- CFA Candidates:-----------------------180-------------------------------------------820---- Given the information that a member of the group is in Favor of a continuing education requirement. what is the probability that she is a CFA candidate? A: 37% B: 43% C: 50% D: 57% Anyone figure out how this is A?? I am having trouble with it (answer is A in the book)

I get 180/415= 43%

Delhi can you give us a clue?

Check errata Ans i B

Man, This schweser book is so aggravating… So many incorrect answers, or ambiguous questions that can be answered differently.