CFA Practice Question

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CFA Practice Question

Determine whether the following indicators of numerical values would be parameters or statistics.

I. ______ of a company's board members were in favor of initiating a new training program.
II. In a survey of customers, ______ were satisfied with the service they were given.
III. Of the undergraduate students at a university, ______ lived off campus last year.

A. statistic; statistic; parameter
B. statistic; statistic; statistic
C. parameter; statistic; parameter
Correct Answer: C

User Contributed Comments 10

User Comment
Pooh #1 can be tricky, it can be a statistic if one considers all possible outcomes of the new training program -- in favor, not in favor or neither.
bobbi parameter relates to population while statistic refer to sample.
Carter Always ask yourself: What are we measuring?

For #1: we aren't measuring the outcome of the new training program. We are measuring the opinions of the Board members. There is only a limited number of responses that can be gathered rather quickly.

accounting the clue words are in and of
StanleyMo i think clue word is survey :)
mordja The issue with one is that it measures all board members responses, thus it is a parameter as it measures all responses from a population
AnkitDAnalyst i agree with accounting
endlessfin1te parameter relates to population while statistic refer to sample, SIMPLE
2014 company board is "population'

Paramter measures some aspects of scores

it is a measure of views of population
jadamo10 Yes accounting and StanleyMo
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