- CFA Exams
- CFA Exam: Level I 2021
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 6. Measures of Dispersion

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**CFA Practice Question**

Let us define a new statistic as the distance between the 70th sample percentile and the 30th sample percentile. This new statistic would give us information concerning ______.

B. variability

C. relative position

D. skewness

E. symmetry

A. central tendency

B. variability

C. relative position

D. skewness

E. symmetry

Correct Answer: B

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**User Contributed Comments**
6

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

surob |
Can someone expain what it means? Why B? |

arkot90 |
it s a measure of absolute dispertion like range so it measures the variability |

gmilchev |
Can someone give more detail? |

Saxonomy |
* Central Tendency would need the mean, or arguably the 50th %ile info. * Relative Position would need to compare a %ile against a reference e.g mean or 50th %ile. * Skewness needs mean against median or vice versa. * Symmetry needs more than 30%/70%, would need 49/51, 45/55, 40/60 and maybe one or two more. Variability is the only answer that you can confidently get from a 30/70 %ile data reference. Hope this makes sense. |

jejasin |
If this were fill in the blank I would've guessed kurtosis... =\ |

sungryongl |
why can't A slo be an answer? mean would be 50th percentile in between 70th and 30th |