Quantitative Methods Flashcards
What is up-move factor?
One plus the percentage increase when variable goes up.
What is down-move factor?
One divided by the move-up factor.
Why stratified random sampling is used?
It is used to preserve characteristics of an underlying data set.
How standard deviation can be calculated?
- Compute Expected Value by calculating weighted average.
- Compute Variance by summing weight*gap between the value and weighted average squared.
- Compute square root of variance.
What is down grade risk?
Risk of getting credit rate down graded.
What is default risk?
Risk of the other party failing to make contractually promised payment.
What is shortfall risk?
Risk of portfolio value falling below some minimum level at a future date.
What is Type I error?
Error of rejecting null hypothesis when it is true. (擬陽性）
What is Type II error?
Error of not rejecting null hypothesis when it is false. （偽陰性）
What is significance level?
Probability of Type I error.
What is confidence level?
One minus significant level.
What is the Power of Test?
One minus Type II error.
What are the odds?
Probability that the event occurs divided by the probability that the event does not occur.
Dividing covariance between returns of two assets by the individual standard deviations of returns of two assets yields…
Correlation coefficient.
What is the sampling error?
The difference between a sample statistics and the corresponding population parameter.
How to compute equivalent annual rate of continuously compounded rate?
Press 1+continuously compounded late and LN button of BA II.
What is standard error of the sample mean？
Standard deviation of sample mean.
How standard deviation of sample mean can be estimated ?
Divide population mean by Root n.
Classify real personal income, unemployment rate, building permits to coincident, lagging and leading indicator.
Coincident indicator- personal income, lagging- unemployment and leading - building permits.
Name some of the lags concerning fiscal policy.
Recognition lag, action lag, and impact lag.
Name characteristics of different market types.
Differentiated products for monopolistic competition, interdependence for oligopoly, horizontal demand curve for perfect competition.
What is the Fisher effect?
nominal interest rate equals the sum of real interest rate and expected inflation rate.
How the land is reported in USGAAP?
By historical cost.
