CFA Level 1 - Quantitative Methods Review for CFA Level 1 Prep

Now that you have finished studying Quantitative methods for CFA Level 1, you need to spend a session to review important areas. It could be an additional day or extra time depending on you time availability. 

Global Formula & Concept Review

Quick tour of all Quant LOS

Time Value of Money (TVM): discounting/compounding, annuities, perpetuities, NPV/IRR.

Descriptive statistics: mean/median, variance/Standard deviation (SD), coefficient of variation, skewness, etc.

Probability: basic rules, conditional probability, Bayes, expected value and variance of random variables.

Sampling & estimation: standard error, point vs interval estimate.

Hypothesis testing & Confidence Interval: what you did Days 10–12.

Correlation & simple regression: slope, intercept, R², limitations.

• For each area, write down 3–5 key formulas 
• Do Topic‑wise Mixed Question Sets (VImp)
• Do it “slow but correct”, speed issue to revisit later in the full‑curriculum phase.

Simulate a compact Quant exam:

• Take 35–40 Quant questions from across topics, mixed and not in order, under a time cap (~60 minutes).
• No pausing to check; just mark guesses.

Review (at least another 45–60 min):

• Build a final Quant error sheet:for review later
• Spend a short block doing 5–10 questions on the single area that still feels worst after the mini‑mock

Here are some Quant review resources. The official CFA curriculum is always by far the best resource for preparation. These are additional helpful materials.

Level 1 Quant Cheat Sheet

CFA Level 1 Quantitative Methods Cheat Sheet 2026

Sample Questions

CFA® Level 1 Quantitative Methods (2025) questions and answers

CFA Level I Crash Course | Session 4: Quantitative Methods - Day 4

Day 12 - Hypothesis Testing and Cofidence Interval - Review and Practice - CFA Level 1 Prep

 Goal: Today's goal  is to turn Day 10–11 concepts into automatic exam‑style problem solving across all the testing ascpects covered so far like mean, variance, CI, p‑value/critical value, Type I/II, etc.

Make it a day for mixed concept drill

Make a single sheet that forces you to recall definitions and decision rules

• From Day 10: null vs alternative, one‑ vs two‑tailed, significance level, Type I and II errors, decision rule, test statistic idea.

• From Day 11: CI construction, when to use z vs t, single mean test, single variance test, p‑value vs critical value, power.

Questions

Do a set of 15–20 questions that mix:

• Constructing CIs (mostly 95%, with a few 90%/99%).
• Testing hypotheses about a single mean (both one‑ and two‑tailed).
• Using both critical value and p‑value approaches.

For each question, explicitly answer:

1. What are H₀ and H₁?
2. What distribution (z or t) and why?
3. Test statistic value.
4. Decision by p‑value, decision by critical value.
5. If applicable, check: does the CI include the hypothesized value?

Variance Tests + Power Interpretation

Do 5–8 questions on tests of a single variance using chi‑square. Focus on:

1. Correct df, correct tail(s), and reading chi‑square critical values.

Then add 3–5 conceptual questions (or create them for yourself) on:

1. How increasing sample size affects power.
2. How changing α changes Type I vs Type II trade‑off.

End Day 12 Quant session with a mini Quant block (20–25 questions) just on testing/CI:

• Time yourself at ~1.5 min/question.
• Then review and mark each as: “Concept error”, “Formula error”, or “Careless”.
• Anything that is a concept or formula error becomes priority for Day 13.

Daily Ethics block: 30–45 min

Try this pattern each day:

1. 10–15 min reading / notes
• Pick one small chunk: one Standard (e.g., Standard II(A)–Material Nonpublic Information) or a short section of GIPS.
• Make 2–3 bullet notes in your own words: “What is prohibited? What is allowed?”
2. 15–20 min questions
• Do 8–12 vignette‑style or stand‑alone Ethics questions from your Q‑bank or CFAI practice.
• Aim for careful reading, not speed. Ethics is about nuance and wording.

Day 11: CFA Level I Quantitative Methods Study Plan - Hypothesis Testing, Correlation, Regression | CFA Level 1 90 Days Prep

This is a study plan, not official CFA Institute curriculum material. Use it to guide your preparation, then rely on your CFA notes, curriculum, or question bank for the actual readings and practice questions.

Day 11 builds on yesterday's hypothesis testing foundations by connecting test statistics to confidence intervals and working through full hypothesis test examples. Today you'll move from understanding the theory to applying the decision framework across different test types.

Prep Checklist

10-15 minutes :

• Workspace: Open a new notebook page titled "Confidence Intervals & Hypothesis Test Applications"
• Formula sheet: Add formulas for confidence interval construction, critical values for t-tests and z-tests, and the relationship between confidence level and significance level
• Calculator: Clear memory and review how to find t-statistics and z-statistics using your calculator's distribution functions
• Question bank setup: Create or filter a set called "Day 11 CI and Hypothesis Applications"
• Flash Cards: Filled or ready to be filled up
• Log Book: To log concepts, errors as we have been doing

Today's goal is connecting yesterday's concepts to real applications. You should be able to construct a confidence interval, perform a complete hypothesis test, and explain what both tell you about the population parameter.

Daily Ethics reading and prep

Spend 10-15 minutes on Ethics before the Quant block.

Today's Ethics focus: selective reporting and cherry-picking results.

Read or create one short scenario where an analyst reports only statistically significant findings while hiding non-significant tests. Then ask:

• Did the analyst disclose all tests performed?
• Were negative or null findings suppressed?
• Does the presentation create false confidence?
• Are limitations and uncertainty clearly stated?
• Could this selective disclosure mislead stakeholders?

Then complete 5 Ethics warm-up questions focusing on misrepresentation, disclosure obligations, and fair dealing. For any missed Ethics question, classify it as Concept gap or Reading error.

Main study block

Today's Quantitative Methods focus is confidence intervals and hypothesis testing applications.

Study these subtopics:

• Confidence interval construction: Using sample statistics to create a range estimate for the population parameter
• Relationship between CI and hypothesis tests: A two-tailed test at α = 0.05 corresponds to a 95% confidence interval
• t-test versus z-test: When to use t-distribution (small sample, unknown population variance) versus z-distribution (large sample or known variance)
• Test of a single mean: Performing a complete hypothesis test for a population mean
• Test of a single variance: Testing claims about population variance using chi-square distribution
• Interpreting confidence intervals: What it means when a hypothesized value falls inside or outside the interval
• Critical value approach: Comparing test statistic to critical value
• p-value approach: Comparing p-value to significance level
• Power of a test: The probability of correctly rejecting a false null (1 - Type II error probability)

Key insight for today: A confidence interval gives you a range of plausible values, while a hypothesis test gives you a yes/no decision about a specific claim. Both use the same underlying statistics but answer different questions.

25-question practice target

Complete 25 questions today using this breakdown:

• 5 questions: Confidence interval construction and interpretation
• 4 questions: Relationship between confidence intervals and hypothesis tests
• 3 questions: Choosing between t-test and z-test
• 4 questions: Complete hypothesis test of a mean (all steps)
• 3 questions: Critical value approach versus p-value approach
• 2 questions: Test of variance or other parameters
• 4 questions: Mixed review from Days 9-10 (sampling, hypothesis foundations)
• 5 questions: Ethics warm-up on selective reporting and disclosure

For every complete hypothesis test question, write out all five steps in order: (1) state hypotheses, (2) identify test statistic and distribution, (3) state decision rule, (4) calculate test statistic, (5) make decision and interpret in context.

Mistake-log prompt

Log every missed or guessed question using exactly one of these labels:

• Concept gap: I did not understand when to use t versus z, or how CI relates to hypothesis tests
• Formula gap: I understood the concept but used the wrong formula or forgot degrees of freedom
• Calculator error: I made an arithmetic error, used wrong distribution function, or misread a table
• Reading error: I misunderstood the question stem, mixed up one-tailed and two-tailed, or misinterpreted the confidence level

For Ethics mistakes, use mainly Concept gap or Reading error.

Five-question review checkpoint

Answer these without notes at the end of the session:

1. How do you construct a 95% confidence interval for a population mean when population variance is unknown?
2. What is the relationship between a 95% confidence interval and a two-tailed test at α = 0.05?
3. When should you use a t-test instead of a z-test?
4. What are the five steps of a complete hypothesis test?
5. If a 90% confidence interval for the mean is [12.5, 18.3], would you reject H₀: μ = 20 at α = 0.10 using a two-tailed test? Why?

This completes your Day 11 study plan. Tomorrow you'll likely move into comparing two populations or advance to other hypothesis test applications, building on the confidence interval and testing framework you've solidified today.

Can you comment on how many LOS you have covered so far and if this study plan has been helpful?