Page 71 - FINAL CFA I SLIDES JUNE 2019 DAY 3
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LOS 11.d: Distinguish between time-series
and cross-sectional data, p.252 Session Unit 3:
11. Sampling and Estimation
Time-series -data taken at specific and equally spaced time intervals.
Cross-sectional - data taken at a single point in time.
Longitudinal – data on multiple characteristics (GDP, Inflation) of the same entity over time.
Panel -data on multiple characteristics (GDP, Inflation) of the multiple entities over time.
Ormal
LOS 11.e: Explain the central limit theorem (CLT) and its importance.
Give a population with say: Repeated SRS (with replacement) produces a sampling distribution with:
Size = n • sample mean, x,
Mean = µ; and approaching a normal pd with
Finite variance = σ2 • mean µ and
• variance = σ2/n What’s √variance?
As the sample size becomes large.
Regardless of the population’s distribution, as long as the sample size is “sufficiently large,” (n ≥ 30), specific inferences
about the population can be drawn!
