CFA Practice Question

There are 155 practice questions for this study session.

CFA Practice Question

Which statement is correct?
A. If the word 'CFA' appears many times in a document, while not appearing many times in others, it probably has a high document frequency value.
B. Words that are common in every document, such as this, what, and if, rank high in document frequency.
C. Any outliners should always be removed from a dataset in data strangling.
Explanation: A is correct. This means that itís very relevant.

B is incorrect. Document frequency works by increasing proportionally to the number of times a word appears in a document, but is offset by the number of documents that contain the word. Words that are common in every document, such as this, what, and if, rank low even though they may appear many times, since they donít mean much to that document in particular.

C is also incorrect. They should be examined first, and a decision should be made to either remove them (trimming) or replace them with appropriate values (e.g. winsorization).

User Contributed Comments 3

User Comment
SenanOM The explanation says A is correct, but then it also says C is correct. Am I going crazy, or is this a mistake...?
rtw1984 Mistake indeed..
JNW1980 This entire question bank on this section seems to have a lot of errors...
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