Maximum likelihood estimation is a method for:
A quadratic form is
Which of the following statements concerning class intervals used for grouping of data is correct?
When grouping data, attention must be paid to the following with regards to class intervals:
1. Class intervals should not overlap
2. Class intervals should be of equal size unless there is a specific need to highlight data within a specific subgroup
3. The class intervals should be large enough so that they not obscure interesting variation within the group
Suppose we perform a principle component analysis of the correlation matrix of the returns of 13 yields along the yield curve. The largest eigenvalue of the correlation matrix is 9.8. What percentage of return volatility is explained by the first component? (You may use the fact that the sum of the diagonal elements of a square matrix is always equal to the sum of its eigenvalues.)
The bisection method can be used for solving f(x)=0 for a unique solution of x, when
Which of the following can induce a 'multicollinearity' problem in a regression model?
There are two portfolios with no overlapping of stocks or bonds. Portfolio 1 has 6 stocks and 6 bonds. Portfolio 2 has 4 stocks and 8 bonds. If we randomly select one stock, what is the probability that it came from Portfolio1?
Two vectors are orthogonal when:
Exploring a regression model for values of the independent variable that have not been observed is most accurately described as…
A linear regression gives the following output:
Figures in square brackets are estimated standard errors of the coefficient estimates.
What is the value of the test statistic for the hypothesis that the coefficient of is less than 1?
