CFA Practice Question

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CFA Practice Question

Which statement is FALSE about bootstrapping?

I. It does not make assumptions about the distribution of your data.
II. It can select a data point more than once for a resampled dataset.
III. It creates resampled datasets that are the same size as the original dataset.
IV. Each simulated dataset has its own set of sample statistics, such as the mean, median, and standard deviation.
Correct Answer: None is false.

I. You merely resample your data and use whatever sampling distribution emerges. Then, you work with that distribution, whatever it might be.

II. Resampling involves reusing your one dataset many times.

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