Finance, Statistics, and Analysis

Question 1

Zero Based Budgeting

Answer 1

Zero Base Budgeting uses decision packages that can be independently decided upon for funding purposes.

Question 2

Program Performance Based Budgeting

Answer 2

Performance-based budgeting requires programs and agencies to work toward a larger purpose, while meeting specific goals and performance measures. Performance measures also require agencies and programs to collect data on the services they provide. Data collection can help ensure that programs are transparent and accountable, and it promotes efficiency.

Question 3

Revenue Bond

Answer 3

A revenue bond is backed by income from specific projects, such as a toll bridge or a stadium.

Question 4

General Obligation Bond

Answer 4

General obligation bonds are backed by the general tax revenues and are generally considered safe investments.

Question 5

Rule of 70

Answer 5

Divide 70 by percent growth to get approximate doubling time

Question 6

Push Analysis

Answer 6

A push analysis determines the sales capacity of a market area and if the introduction of a new business will generate additional customers.

Question 7

Systematic Random Sample

Answer 7

In a systematic random sample everyone in the population has an equal chance of being selected. One example of a systematic random sample would be to select a number at random and then selecting every Xth person after that.

Question 8

Regional input-output modeling system

Answer 8

The Regional input-output modeling system provided by the Bureau of Economic Analysis provides employment multipliers based on the North American Industrial Classification System which can be used to calculate a location quotient.

Question 9

Regression Analysis

Answer 9

Regression Analysis can be described as a statistic that provides an estimate of one variable based upon other variables.

Question 10

Symptomatic Estimation

Answer 10

Symptomatic estimation calculates the population of an area based on number of housing units, building permits issued, etc.

Question 11

Step Down Method

Answer 11

The step-down method would be the most appropriate in this case. The step-down method applies proportion and uses the population of a larger entity (e.g., a city) to estimate the population of a smaller entity within it (e.g., a neighborhood).

Question 12

Twelve Leading Indicators

Answer 12

The US Department of Commerce uses an index of twelve leading indicators to measure the direction of the economy. These include interest rates, stock prices, oil prices, unemployment, housing starts, and consumer expectations are all part of the leading indicators.

Question 13

Measures of Dispersion

Answer 13

Measures of dispersion describe the spread of the data. They include the range, interquartile range, standard deviation and variance.

Question 14

Standard Deviation

Answer 14

A low standard deviation indicates that the values tend to be close to the mean (also called the expected value) of the set, while a high standard deviation indicates that the values are spread out over a wider range.

Question 15

Variance

Answer 15

Variance measures variability from the average or mean. It is calculated by taking the differences between each number in the data set and the mean, then squaring the differences to make them positive, and finally dividing the sum of the squares by the number of values in the data set.

Question 16

Future Value

Answer 16

Question 17

Gross National Product (GNP)

Answer 17

Gross national product (GNP) is the market value of all the products and services produced in one year by labor and property supplied by the citizens of a country. Unlike gross domestic product (GDP), which defines production based on the geographical location of production, GNP allocates production based on location of ownership.

Question 18

Gross Domestic Product (GDP)

Answer 18

All final goods and services produced in a country in one year

Question 19

Certificate of Obligation (CO)

Answer 19

CO’s are similar to GO bonds, except that they do not require voter approval before they are issued. The CO’s are also guaranteed by the City’s taxation power and are counted in the calculation of the tax rate that is needed to support debt payments.

Question 20

Oversampling

Answer 20

The practice of selecting respondents so that some groups make up a larger share of the survey sample than they do in the population.

Question 21

Primacy Effect

Answer 21

The primacy effect is a cognitive bias and refers to an individual’s tendency to better remember the first piece of information they encounter than the information they receive later on.

Question 22

Stratified Random Sampling

Answer 22

Used when subpopulations within an overall population vary. Sample each subpopulation independently and merge for total population.

Question 23

Capitalization Rate

Answer 23

Rate of return on a real estate investment based on the expected income that the property is expected to generate. This represents the potential return on investment. The capitalization rate is calculated by dividing the income the property will generate, subtracting known costs, by the total value of the property.

Question 24

Linear Growth Pyramid

Answer 24

Consecutive age groups by sex move up the pyramid, which gradually narrows

Question 25

Planning, Programming, and Budgeting System (PPBS)

Answer 25

Integration of a number of techniques for identifying, costing and assigning a complexity of resources for establishing priorities and strategies in a major program; and for forecasting costs, expenditure, and achievements within a time period. integrates the process of program/ project formulation, budget allocation and evaluation in a systematic way. Helps in the choice of programs/ projects, allocation of resources on them, and performance evaluation.

Question 26

Coupon Rate

Answer 26

Rate of interest for bonds, notes, and other securities.

Question 27

Gompertz Curve

Answer 27

The Gompertz curve or Gompertz function is a type of mathematical model for a time series, named after Benjamin Gompertz (1779–1865). It is a sigmoid function which describes growth as being slowest at the start and end of a given time period.

Question 28

General Fertility Rate

Answer 28

Births per 1,000 persons calculated by the number of recorded live births in a year divided by the mid-year female population between the ages of 15 and 44.

Question 29

Null Hypothesis

Answer 29

The null hypothesis is the commonly accepted fact; it is the opposite of the alternate hypothesis. Researchers work to reject, nullify or disprove the null hypothesis. Researchers come up with an alternate hypothesis, one that they think explains a phenomenon, and then work to reject the null hypothesis.

Question 30

Discrete Variable

Answer 30

A variable that can only take a finite number of values is called a discrete variable.

Question 31

Dichotomous Variable

Answer 31

A dichotomous variable has only two values, typically zero and 1. This is also known as a binary variable.

Question 32

Dependency Ratio

Answer 32

[(children + elderly)/(working age population)]

Question 33

T-Test

Answer 33

A t-test is a statistical test that compares the means of two samples.

Question 34

Discount Rate

Answer 34

Interest Rate

Question 35

Birth Rate

Answer 35

Births/Total Pop (within specific time period)

Question 36

Death Rate

Answer 36

Deaths/Total Pop (within specific time period)

Question 37

Pop Rate of Change (Based on Birth and Death Rates)

Answer 37

Birth Rate - Death Rate. (Then apply Future Value formula, with number of periods based on time period used for birth and death rates.)

Question 38

Economic Base Multiplier

Answer 38

Total Jobs/Jobs in Basic Sector. Indirect effect of $1 of basic activity on the economy. $1 of outside money becomes more within local economy.

Question 39

Performance Budget

Answer 39

A performance budget is one that reflects both the input of resources and the output of services for each unit of an organization. The goal is to identify and score relative performance based on goal attainment for specified outcomes. This type of budget is commonly used by government bodies and agencies to show the link between taxpayer funds and the outcome of services provided by federal, state, or local governments.

Question 40

Data Scales

Answer 40

Quantitative: Interval, Ratio. Ratio is golden standard.
Qualitative: Nominal, Ordinal.
Discrete: finite number of values (e.g., counts of events). Special case - binary or dichotomous (only two values)
Continuous: Infinite number of values (positive and negative)

Question 41

Progressive Tax

Answer 41

Progressive tax increases the tax rate as the tax base increases (i.e., the tax rate, along with tax liability, increases as an individual or entity’s wealth increases).

Question 42

Proportional Tax

Answer 42

A proportional tax, also referred to as a flat tax, assesses the same tax rate regardless of income or wealth.

Question 43

Tax Increment

Answer 43

A tax increment is the additional property tax generated by a development; the increment is “captured” to finance development costs.

Question 44

Regressive Tax

Answer 44

Under a regressive tax system (e.g., sales tax), individuals and entities with low incomes pay a higher amount of that income in taxes compared to high-income earners.

Question 45

Regional Tax Sharing

Answer 45

Regional tax-base sharing offers one way to alleviate this problem. Under tax-base sharing, all of the municipalities within a metropolitan area agree to share tax proceeds from new development.

Question 46

Push Analysis

Answer 46

A push analysis determines the sales capacity of a market area and if the introduction of a new business will generate additional customers.

Question 47

Multivariate Analysis

Answer 47

When the relationship between two variables is really determined by a third variable (or more).

Question 48

Test Statistic: Z Score

Answer 48

Compare to standard deviation. In a z-test, we assume the sample is normally distributed. A z-score is calculated with population parameters such as population mean and population standard deviation. We use this test to validate a hypothesis that states the sample belongs to the same population. “Do these two populations differ?”

Question 49

Test Statistic: T Test

Answer 49

Test on difference between means. We use a t-test to compare the mean of two given samples. Like a z-test, a t-test also assumes a normal distribution of the sample. When we don’t know the population parameters (mean and standard deviation), we use t-test. “Do these two samples differ?”

Question 50

Test Statistic: Chi Square Test

Answer 50

Difference between observed and expected. Test on goodness of fit. We use the chi-square test to compare categorical variables. “Are these two categorical variables independent?”

Question 51

Regression Analysis

Answer 51

Dependent variable and explanatory variables

Question 52

Participatory Budgeting

Answer 52

When community members vote on capital budget priorities in their service area