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| Section | Objectives |
|---|---|
| Topic 1: Risk Measurement Techniques | - Volatility and correlation
|
| Topic 2: Probability and Statistics Foundations | - Random variables and probability distributions
|
| Topic 3: Stochastic Processes and Time Series | - Time series analysis
|
| Topic 4: Simulation and Numerical Methods | - Monte Carlo simulation
|
1. Newton-Raphson iteration is used to find a solution of x5 - x3 + x = 1. If xn = 2, what is xn+1?
A) 1.623
B) 2.362
C) 1.638
D) 0.377
2. Let f(x) = c for x in [0,4] and 0 for other values of x.
What is the value of the constant c that makes f(x) a probability density function; and what if f(x) = cx for x in
[0,4]?
A) 1/4 and 1/6
B) 1/7 and 1/9
C) 1/4 and 1/7
D) None of the above
3. What is the simplest form of this expression: log2(165/2)
A) 32
B) log2 (5/2) + log2(16)
C) 5/2 + log2(16)
D) 10
4. Which of the following statements is not correct?
A) A function is a rule that assigns to every value x at least one value of y.
B) For finite and small domains, the action of a function may be specified by a list.
C) A function is defined by its domain together with its action.
D) Every linear function is also a quadratic function.
5. In statistical hypothesis tests, 'Type I error' refers to the situation in which...
A) Both null hypothesis and alternative hypothesis are rejected
B) Both null hypothesis and alternative hypothesis are accepted
C) The null hypothesis is accepted when in fact it should have been rejected
D) The null hypothesis is rejected when in fact it should have been accepted
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: D |
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