Data and Statistical Reasoning CFA 1 Review

Front

What are resistant measures in statistics?

Back

Resistant measures are statistical measures that are not significantly affected by outliers. Examples include the median and the interquartile range (IQR).

Front

What is the median?

Back

The median is the middle value in a data set when the values are arranged in ascending order. It divides the data into two equal halves.

Front

What is the interquartile range (IQR)?

Back

The interquartile range (IQR) is the difference between the first quartile (Q1) and the third quartile (Q3) in a data set. It measures the spread of the middle 50% of the data.

Front

How does an outlier affect the mean and median?

Back

An outlier can significantly affect the mean, pulling it towards the outlier value, while the median remains unchanged.

Front

What is the mean?

Back

The mean is the average of a data set, calculated by adding all the values together and dividing by the number of values.

Front

What does it mean if the mean is less than the median?

Back

If the mean is less than the median, it suggests that the data distribution is left-skewed, meaning there are lower values pulling the mean down.

Front

What is a histogram?

Back

A histogram is a graphical representation of the distribution of numerical data, showing the frequency of data points within specified ranges (bins).

Front

What is the range in statistics?

Back

The range is the difference between the maximum and minimum values in a data set, indicating the spread of the data.

Front

What does it mean for a distribution to be skewed?

Back

A skewed distribution is one where the data points are not symmetrically distributed around the mean, leading to a longer tail on one side.

Front

What is the significance of using the median in data analysis?

Back

The median is often used to describe the typical value in a data set, especially when there are outliers, as it provides a better representation of the central tendency.