- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 3. Statistical Measures of Asset Returns
- Subject 1. Measures of Central Tendency
CFA Practice Question
If a given score is at the 30th percentile for reference group A and the 60th percentile for reference group B, which of the following is most likely true?
A. A person at the 15th percentile with group A will be at the 30th percentile with group B.
B. A person at the 80th percentile with reference group B will be at the 50th percentile with group A.
C. Individuals in reference group B generally scored lower on the test than those in reference group A.
User Contributed Comments 5
| User | Comment |
|---|---|
| simonjdp | For group A 30% of the scores are below the given score and for group B 60% are below the score. Thus more in group B performed lower. |
| Janey | How can you tell that it is below? Why not above? If 60% scored above, then the first choice would be the correct answer. The question should read in the top 30th percentile for the selected choice to be right. |
| tabulator | It's by definition of the percentile. |
| JimM | A percentile score means that the person scored better than that percentage of people. Flipping it around, a 30th percentile means 30% scored worse than the person. So, group A has 30% below a given score and group B has 60% of the people below the same given score. Therefore, the people in group B on average performed worse than those in group A because more people in B did worse. |
| aakash1108 | good question! Lets say the score reference score is 45. 45 is at 30th percentile for "Group A" whereas 45 is at 60th percentile for "Group B" This means that 30% members in group A scored 45 or less and remaining 70% scored more than 45. Whereas 60% members in group B scored 45 or less and only 40% members scored more than 45. Thus, it is evident that Group B has a lower "Mean Score" than Group A. |