Chapter 3

Question 1

Sample Mean

Answer 1

Mean = Sum values in sample / n observations

Question 1

Median
Mean
Mode

Answer 1

Midpoint
Average
Most Frequent Number

Question 2

Dispersion
Range
Mean Absolute Deviation

Answer 2

Dispersion is defined as variability around the central tendency

Range is distance between largest adn smallest value

MAD is average of absolute deviation from arithmetic mean

Question 3

MAD Formula

Answer 3

Question 4

Sample Variance ( S^2 )
Sample SD (s)

Answer 4

Question 5

Coefficient Variation (CV)

Definition

Lower or Higher?

Formula

Answer 5

Measures the amount of dispersion in a distribution relative to distributions mean.

Lower CV is better; less risk per unit of return.

Question 6

Target Downside Deviation

Answer 6

Question 7

Positive Skew

Answer 7

Question 8

Negative Skew

Answer 8

Question 9

Kurtosis

Leptokurtic

Answer 9

Question 10

Sample Covariance

Answer 10

Question 11

Correlation

Answer 11

Sx = Variance of X
Sy = Variance of y

Sxy / (Sx)*(Sy)

Question 12

Pearson Correlation Coefficient with example.

Answer 12

Question 13

Pearson Correlation Coefficient Formula

Answer 13

Question 14

Sample Correlation Coeff

Answer 14

Question 15

Population Correlation

Answer 15