CFA® Level 1: Exam Question Analysis

CFA® Level 1: Doubling Values, Adding Constants, and Median

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Question

Which of the following is/are true?

I. Doubling every single value in a sample doubles the sample median.

II. Adding a constant to each value in a sample causes the median to increase by the same constant.

III. The median of a sample decreases as the number of observations increases.

Answers

Explanations

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A. B. C. D. E. F. G.

G

The median of a set with odd number of observations equals the "middle" observation. If the number of observations is even, the median is the mean of the two middle observations. From this, I & II follow. (III) is not necessarily true.