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The exam would not (hopefully) have an ambiguous question.

I don't really answer your question, but I thought I would add two more cents.... CI’s are always two-sided. If random samples are obtained over and over again, then the unknown population parameter βj would lie in the interval for (1-α) % of the samples. We can’t know whether the parameter...

Thanks Shakti! You are the man! That makes sense.... Brian

I simply cannot get this to compute.... One of the assumption of multiple linear regression states that the error term cannot contain any factors that both affect Y and are also correlated with any of the independent variables in the regression. To me, this is impossible to accomplish. How...

An investment with positive skew suggests that positive returns are more likely than negative returns, so clearly, and investment with positive skew would be preferable to an investment with negative skew, ceteris paribus.

An investment with negative skew would suggest that losses are more likely than gains..... Make sense? If an investor is considering two investments, 1) with skewness = 0 and 2) with skewness < 0. All else equal, the second investment would be less attractive since, compared to the first, it...

These questions are a bit too non-specific to adress in my opinion. I would suggest trying to ask more specific questions that are more aligned with the AIMS. I doubt any of the above questions would be asked on part 1 (or part 2). Just my initial thoughts.....

Are you saying that you have no familiarity with concepts related to the Normal Distribution? If so, these concepts are fairly critical for the FRM. The concepts are covered in detail in Miller's text as well as Stock and Watson's text, if I remember correctly (although I don't recall if they...

I think it is a revenue play by the issuing entity. I would be very surprised if CFA charterholders are actually paying the fees themselves; rather, I suspect that most employers pick up these fees for their employees with the CFA (or any other) designation.

From GARP's website: The Applying Instructional Materials (AIM) Statements are made available to 2014 FRM Exam paid candidates to assist in Exam preparation. The AIM Statements are designed to serve as an additional study resource and will not in and of themselves fully prepare a candidate for...

Absolutely - I would hire an FRM and CFA holder over most alternatives. I also see many senior level executives (within quantitative disciplines) with both the FRM and CFA (which, ironically, is a good portion of my motivation for seeking both the FRM and CFA! - I am a very late starter though!)

From my perspective, if I was going to choose to hire someone with an FRM or a PRM, I would not assign much difference. That being said, if I were to choose between a candidate with one of the certifications or a candidate with both the FRM and PRM, I would hire the candidate with both...

I agree with Shakti - I would also recommmend, although it may not be suitable for all students, that you simply read the entire curriculum once before really digging deep into individual topics. I did this and found that it helped me prioritize things. However, it really depends on how much...

The question sets provide deep explanations as well. It may be the case that BT feels the question sets are sufficient. However, it may also be the case that BT hasn't had a chance to produce study notes or perhaps the subject is so brief that notes are not warranted. At the end of the day, I...

I hadn't had a chance to respond! I'll say, "Yeah, what he (David) said!" Brian

Hi Jayanthi! Glad to see you working so hard! This example is a bit unintuitive at first. The critical thing to realize is that the example is assuming a Bernouli random variable, if I'm not mostaken. So, that means there are two outcomes, namely, X=1 with probability p and X=0 with...

To offer some additional thoughts, (which have already been mentioned more or less above,) I always considered them equivalent. P(A|B) = P(A) iff A and B are independent. But we also know that P(A|B) = P(A and B) / P(B) and since A and B are independent, we have P(A and B) = P(A)P(B), so...

Just a quick note - I did mention that the x^a needed to be surrounded by parentheses. I guess I should have written ((x^a))^b

Jayanthi, the method Shakthi is using is a property of exponentials, although it isn't necessary to do it that way on a calculator. I couldn't figure out how to add parentheses around the X^a on the right hand side, but assume they are there.

How? I am not sure I understand that questions. Exp(5) = 148.41. I agree with that. Exp(5*.95) = Exp(4.75) = 115.58 but I do not know that source of those numbers...so I can't opine on the validity of the calculation nor do I know what you are getting at really.