# (Q. 3328) and Q.3397 FRM part 1

Someone please make me understand the solution of these questions.

#### 纳 # Q.374 Quantitative Analysis

After 72 FRM Part 1 students took a mock exam, the mean score was 75. Assuming that the population standard deviation is 10, construct a 99% confidence interval for the mean score on the mock exam. A (75, 85) B (65, 75) C (71.96, 78.04) D (75, 78.04) The correct answer is: C A 99% CI for the mean, μ = x̄ ± Zα/2 *σ/√n where α =0.01From the normal dist. table, Z0.005 = 2.58μ = 75 ± 2.58 * 10/√72= 75 ± 3.04Giving us a CI = 71.96 ≤ μ ≤ 78.04 *User Question: Please when do we have to use 1,96 for the normal distribution instead of using the normal dist tabke?

#### frm-2,frm-1,frm,question # Q.136 Annuities/cash flows with non-contingent payments

A company pays a dividend of $100,000 quarterly forever starting from now. Assume an annual nominal rate of interest of 4%. Calculate the present value of the dividends. A$9,000,000 B $9,100,000 C$10,100,000 D $11,100,000 E$11,200,000 This is perpetuity-due: $$\cfrac {100000}{d}= \cfrac {100000(1+i)}{i}=10,100,000$$ *User Question: could help to put in the solution why the interest rate is 1% and not 4% (its because it's quarterly and so you would divide the i by 4 and then you multiply by (1+i) because its a perpetuity due)

Actuarial - FM(Financial Mathematics)

#### Financial Mathematics,acturial,exam,question # Q.3500 Financial Markets and Products

#### frm-2,frm-1,frm,question # Q.4498 Current Issues in Financial Markets

How dependent on the particular circumstances (i.e., context) are machine learning approaches within the financial services sector? A Not dependent at all B Dependent to a smaller degree C Dependent to a significant degree D Highly dependent The correct answer is: D The application of machine learning approaches within the financial services sector is highly context-dependent. *User Question: Pardon me, as a non-English speaker, I'm quite confuse the difference between significant and highly, they seem the same for me, is anyone could expalin, please

#### frm-2,frm-1,frm,question   