Level I CFA Quant: Sampling and Estimation-Lecture 2

[@IFT-CFA]

How should I revise before the Level I exam? IFT High Yield Course is the best way! Read more here: ift.world/product/high-yield-course-2021/

[@adamgiorgio3236]

I'm reading over the curriculum and pausing to watch your videos. Let me just say, it's 10 times easier to follow your lecture. Keep up the great work and thank you!

[@IFT-CFA]

Thankyou IFT support team

[@razmigoknayan3804]

I just love your lectures. Keep up the great work!

[@IFT-CFA]

Dear Razmig, Thank you for your great comments. We are really pleased that you are able to benefit from IFT KZbin videos. Be sure to Like the videos; share IFT videos with your social media circles. Thank you! - IFT Support Team

[@Syed.Ali.Shahzad]

Very useful.. I wasn't able to understand from the curriculum and had thought about leaving it altogether but now it's crystal clear.. Thanks for your efforts.. Much appreciated!

[@IFT-CFA]

Dear Ali, Thank you for your nice comments. We are really pleased that you are able to benefit from the IFT KZbin videos. IFT's objective is to help CFA candidates around the world. IFT Support Team

[@lorisvidal8642]

Greetings from France, thanks for your awesome work !

[@IFT-CFA]

Dear Loris, We appreciate your comments and thanks for liking the IFT material. IFT Support Team

[@akanshkumar7535]

How did u calculate the alpha value to 1.96? Can u explain the calculation of 'z' factor?

[@IFT-CFA]

Dear Akansh, The z-value is determined using the the z-table. In this video we have used two-tailed tests which is why we use "α/2" instead of "α" only. For "α/2" = 0.025 we get the z-value from the z-table as 1.96 (we look for the value of 0.975). IIFT Support Team

[@sagar23781]

How do we decide which formula to be used for confidence intervals(11:15)? , as there is a different one with reference to the previous session which is X +- 1.65 s . (The one mentioned in the previous reading when z values were introduced)

[@IFT-CFA]

Dear Sagar, It depends on what confidence interval we choose. For 90 percent confidence interval the z value will be 1.65 (Hence, x +- 1.65) and for 95 percent confidence interval the z value will be 1.96. and so on. IFT Support Team

[@cheikhoudiallo1560]

thank you a thousand times!!!!!

[@IFT-CFA]

Dear Cheikhou, You are welcome and thank you for your nice comments. Please visit our website www.ift.world for more material. IFT Support Team

[@cheikhoudiallo1560]

do you guys have a place where i can ask specific questions of things i did not really get?

[@piyushakulkarni9791]

Amazing content. This was easy to understand. keep up the good work Sir.

[@devangdhanak3374]

Sir, at 16:45 in video, there is 0.549 +/- 0.05 or 0.4505 - 0.55 - - - Here it should also be +/- 0.05 ? & if no then how 0.55 derived? Thanks

[@IFT-CFA]

It says 0.5 +/- 0.05 à 0.5 - 0.05 = 0.45 and 0.5 + 0.05 = 0.55 IFT Support Team

[@devangdhanak3374]

@@IFT-CFA Understood sir, thankyou for explaining !

[@rajmehta4112]

can you explain how did you calculate the range of confidence interval (part of lec 10:38)

[@riyasaha3858]

Thank you

[@avinashpadhi4650]

sir! do we really have to know from where the 1.96 came or we can just memorize it? bcoz i came to know that in exam we will be not provided by the Z table. i hope you'll reply soon.

[@IFT-CFA]

Dear Avinash, We cannot entertain multiple CFA questions via KZbin comments. If you need additional help, please purchase the IFT Q&A service. Alternatively, you can post your query on at www.analystforum.com where we will try to answer your question if you add "Studying with IFT" as shown below on your account profile. If you do post there, then message via this link and include the direct link to your post. IFT Support Team

[@leetran7123]

i think we should memorize the commone ones 90% 1.65 95% 1.96 99% 2.56 thats my opinion

[@adityabhat7104]

hi, will we be given a t & z distribution table in the exam? If not is there a way to calculate it with a calculator or manually?

[@IFT-CFA]

Yes, they are. All values from any table (Chi-squared, Z, T, etc.) will be given for the problems. They don't provide a full table, only the required information to answer the question is provided. IFT Support Team

[@anneliya1]

thank you for the videos!

[@IFT-CFA]

Thanks for your kind words. IFT Support Team

[@avinashpadhi4650]

Sir! you are providing us bible itself, keep that great work. but i just have one doubt...that why you are taking one tailed data from the table ? as you are doing (alpha/2) i.e. the two tailed . i hope you will revert back ASAP. Thank you!

[@IFT-CFA]

Dear Avinash, Confidence intervals involve both left and right tail probabilities, because you add and subtract the margin of error on both sides. For 90% confidence interval it would mean 5% percent in each tail. However, the t-table gives the the area under the curve to the left of the critical value, so using 10%(because this would mean 10% on each side, the answer will reflect 80% confidence interval) as our critical value will be wrong, this is a common mistake by many students please try to get a hang of this concept. The correct method is to use 5%. IFT Support Team

[@josephzhang1797]

what is a reasonable large sampling? as many as possible, or like x% of the estimated entire population? What is the reasonable sufficient x% to continue the analysis?

[@itdoesntmakesense1052]

In the problem involving t -distribution, 90% confidence interval corresponds to 0.05 in each tail. Then you went on to use 0.05 in the t-table (which was a one tailed distribution). Should not be 0.1 in terms of a one-tailed distribution

[@IFT-CFA]

α = 0.10. In order to calculate the reliability factor = = , we look at the row with df = 19. We then look at the column with p = 0.05. The value that satisfies these two criteria is 1.729. This is the reliability factor. IFT support team

[@rishabhg6466]

How to solve for t value for exam? Will the table be given?

[@IFT-CFA]

Dear Rishabh, External: No, you will not be provided a t-table. You need to know the common values like 68%, 90%, 95% and 99%. If they ask for any other value than the common ones, they will give an excerpt from the table which will have the value that you need. IFT Support Team

[@samfuller6368]

im having trouble downloading your website material

[@IFT-CFA]

Please write to ift.freshdesk.com/support/tickets/new IFT support team

[@jyotimala8830]

pls help ,i m stuck here: Assuming that exchange rate is normally distributed,what are the probabilities that the exchange rate will be at least 2 or 3 S.D away from mean

[@kartik9401]

What is the difference b/w sampling distribution and a sample??...its really confusing

[@IFT-CFA]

Dear Kartik, A sample is a subset of the population. If we draw samples of the same size several times and calculate the sample statistic, the sample statistic will be different each time. The distribution of values of the sample statistic is called a sampling distribution. IFT Support Team

[@abhiroopbansal98]

Sir, can we be asked confidence levels other than 90%,95%, and 99%.Like 80%

[@IFT-CFA]

there is a low probability of testing confidence levels other than 90, 95, 99%. IFT support team

[@7parklandplace371]

There is a calculation error: 10%+or - (1.96*0.3)= -48.8% to 68.8%.

[@IFT-CFA]

it is 10 + 0.588 = 10.588 and 10 - 0.588 = 9.412 IFT support team