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

1. Please provide an explanation as to how we arrived at answer C for question 3. I got A first , then I got B finally.

2. 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.
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

3. 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.
We have asked Knowledge Varsity, the content provider, to clarify this question.

- Team DG

4. Q6 Ans B:

First find out R squared which is equal to SSR/SST

R squared = 6000/7000 = 0.857
(1 – RadjXRadj) = (1 – RXR) * (n-1)/(n-k-1)
= (1-0.857) * (18-1)/(18-3-1) = 0.143 * 17/14

Adjusted R square = 0.8263

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

Q7. Which of the following is most likely the value of variable A in the ANOVA table?

A. 3
B. 1
C. 17

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5. The most likely value of variable A in the ANOVA table is:

a)3

There are three independent variables explaining the variation in the dependent variable.

6. Originally Posted by ashish24
The most likely value of variable A in the ANOVA table is:

a)3

There are three independent variables explaining the variation in the dependent variable.
I agree with Ashish.

Here, df = k = 3

7. Q7 Ans A:

The degree of freedom for regression item in the ANOVA table is equal to the number of independent variables (represented as K). Here it will be equal to 3.

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

Q8. Which of the following is most likely the value of variable B in the ANOVA table?

A. 3
B. 14
C. 0

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8. Q8: B

9. I agree with Ketan. The answer is B or 14.

I was looking forward to revision on other topics also.

10. 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

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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

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