# Thread: Free CFA Level 2 practice question bank for June 2011 exam

1. Originally Posted by ashish24
I agree with Ketan. The answer is B or 14.

I was looking forward to revision on other topics also.

hey Ashish,

We had started LOS Review for Level 2 CFA...you can also join and contribute:
http://daulatguru.com/finance-forum-...or-CFA-Level-2

Thnx

2. ## My answer to Q9

Originally Posted by DG Mod
Q8 Ans B:

The degree of freedom for residual item in the ANOVA table is equal to n-k-1,
where n is the number of observation
k is the number of independent variables
For the total item degree of freedom is n-1, since the value is given as 17 => n =18
Hence degree of freedom for residual will be n-k-1 = 18-3-1 = 14

================================================== =====================================
Today's Question (Questions and answers provided by Knowledge Varsity)

Q9. Which of the following is most likely the value of variable C in the ANOVA table?

A. 2000
B. 6000
C. 353

================================================== =====================================

3. Q9 Ans A:

The Mean square value for regression is
MSR = SSR/K = 6000/3 = 2000

================================================== =====================================
Today's Question (Questions and answers provided by Knowledge Varsity)

Q10. Which of the following is most likely the value of variable D in the ANOVA table?

A. Indeterminate
B. 333
C. 71

================================================== =====================================

4. Originally Posted by ashish24
Please provide an explanation as to how we arrived at answer C for question 3. I got A first , then I got B finally.
I used Excel to solve this question. You can see the snapshot below:

5. ## Correct answer is indeed A and not C

6. I got C as the answer in the following way:

B = 14
Unexplained regression = 1000
Therefore D=1000/14= 71.42 or approx 71

7. Q10 Ans C:

Here we are asked to find out Mean squared Error
MSE = SSE / (n-k-1) = 1000/14 = 71

================================================== =====================================
Today's Question (Questions and answers provided by Knowledge Varsity)

Q11. Which of the following is the F value of the sample?

A. 28.17
B. 6
C. 4.67

================================================== =====================================

8. Thanks to all the members for participating in the Forum. I believe that these questions would be useful for your preparation.
The correct answer to the question No - 3 is option C that is 4216 million rupees.
The question is not a difficult question, as it is just plugging the values, here in these type of question the examiner is seeing whether the candidates are alert.
first lets see why A and B are wrong.
A is wrong - If you mistakenly forget to convert the GDP from billions to millions, you will get the first answer
B is wrong - Here the candidates forget that there is negative 180 in the first term, if you dont take that into consideration then your answer will be 4396.
C is correct - Here we reduce 4396 by 180 to get 4216.

The question is easy and that's why many candidates try to save their time by doing the calculation fast, and since the options are those answers which the student will most likely get wrong they do not double check. CFA Institute examination setter know this and they will be putting these dis-tractors in the answer options.

There will be instances where due to delivery pressure we have some error and we will post errata to those in the forum.
I will now be actively taking part in the discussion, please feel free to post on the forum.

Thanks
Ratan Gupta, FRM
Learning Officer
Knowledge Varsity

Originally Posted by neetu
Ashish,

You are right. I have taken the following equation:
Sales = -180 + 6.09 * (T) + 1.05 PS + 0.00015 * GDP
and plugged in:
Temperature in Summer = 42 degree Celsius
Prior year sales = 3000 million Rupees
Nominal increase in GDP = 6600X1000 million Rupees

The answer is: 4395.78 ~ 4396 i.e. B

9. Thanks Ratan!

10. Thank you Ratan for providing the explanation.

Regarding question 11, the answer is A.

F= MSR/MSE = 28.