Michigan Ross iMpact

Leading in Thought & Action

Waiver Exam FAQ

 

Questions

FIN 503 (Full-Time MBA) 
FIN 551 (Eve MBA)

TO 501 
(Eve MBA)

TO 502 
(Full-Time MBA)

How many times may I take the exam? Once

Once

 

Once

Can I bring any electronic devices (e.g. calculator, laptop, Palm)? Financial calculator and laptop. A calculator with square root, logs and exponents only. Laptops, cell phones, PDAs, and Internet capable devices are not allowed.
- Laptops with Microsoft Excel will be required unless a request is made. Students should be prepared to conduct data analysis on a data file that we will provide by email to registered students.
 

- Calculators are not necessary; Excel can be used for all calculations.

- Statistical tables will not be provided. Students are expected to use Excel to obtain statistical information. The recommended textbook contains information on how to use Excel's statistical functions.
 
- Obviously, students will not be permitted to connect to the internet during the exam. They do not need to submit the Excel file; they will only be expected to do the calculations in Excel and then note down their final answers on the answer sheet.
Can I bring any notes or books? No books allowed but you are allowed one 8x11 sheet of paper with notes on both sides.  No books and no notes.  We will provide formulae and tables. No.  Please see above note.
Do I need to pre-register for the exam? No No

Yes, please notify RossAcadServices@umich.edu of your intent to participate.

Who should take the waiver exam? Full-Time MBA:  You should think seriously before taking the waiver exam.  Consider taking FIN 603 in Fall instead of waiving the core, FIN 503. You may want to take the waiver exam only if you have a strong academic background in finance and appropriate real world experience .

EVE MBA: You may consider taking the waiver exam if you have had a graduate-level finance course and two-to-three years of work experience in the finance field.

In the past, students who have had a good chance of passing the exam either had:
  1. A good introductory statistics course and substantial statistical experience at work
  2. Two or more 14 week courses in statistics; at least one course beyond the introductory class.

 

In the past, students who have had a good chance of passing the exam either had:
  1. A good introductory statistics course and substantial statistical experience at work
  2. Two or more 14 week courses in statistics; at least one course beyond the introductory class.

 

What will the exam cover?

This exam will test you on the fundamentals of Financial Management.  The basic concepts that will be covered on the waiver exam are: Time Value of Money, Capital Budgeting, Risk and Return and Efficient Markets Hypothesis..  A good way to prepare for this exam is to review Chapters 1 through 15 of Corporate Finance by Ross, Westerfield, and Jaffee, 8th Edition.  Please gauge your knowledge of the topics by doing as many problems as you can. Constrained Optimization, Probability, Binomial and Normal Distributions, Decision Analysis, Descriptive Statistics, Inference, Hypothesis Testing, Correlation, Regression, Forecasting with Regression Probability, Binomial and Normal Distributions, Descriptive Statistics, Inference, Hypothesis Testing, Correlation, Regression (Simple, Multivariate, and Categorical Variables)

May I waive the course because I have taken a similar course before, or because I would rather take something else?

No, you must pass the waiver exam to waive the course. No, you must pass the waiver exam to waive the course. No, you must pass the waiver exam to waive the course.

Do I have to know EXCEL or any particular software package to pass this exam?

No

No. There will be statistical output on the exam. We will provide a brief summary of the meaning of regression output.

Yes.  Microsoft Excel is required for the exam.

Is there a practice exam?

No No No

Is there a book I should study?

A good way to prepare for this exam is to review Chapters 1 through 15 of Corporate Finance by Ross, Westerfield, and Jaffee, 8th Edition.  Please gauge your knowledge of the topics by doing as many problems as you can.

Most introductory texts are sufficient, including: Ken Black, Business Statistics; Wiley & Sons, Management Science(chapters on constrained optimization and linear, integer, and mixed programming); Powell & Black,Management Science

D.F. Groebner, P.W. Shannon, P.C. Fry, and K.D. Smith, 8th edition,Business Statistics: A Decision Making Approach, Prentice Hall. Chapters 3-9 and 14-15.