- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 3. Frequency Distributions

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**CFA Practice Question**

Which of the following statements is not correct?

A. The sum of the absolute frequency is the total number of observations.

B. Frequency distributions do not work with ratio scales.

C. Each observation is contained in one and only one category.

**Explanation:**Frequency distributions are used to summarize rates of return. They do work with ratio scales. Frequency distributions can be used with any kind of measurement scale.

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**User Contributed Comments**
3

User |
Comment |
---|---|

george2006 |
what about C? It didn't make sense either. |

george2006 |
got it. Each observation can only fall into one category. |

erikgoodge |
I don't understand what choice C means |