The Primary Benefit of a Futures Exchange Is

question 127

Multiple Choice

The primary benefit of a futures exchange is

• A)always knowing its exact location.
• B)indemnifying counterparties against credit or default risk.
• C)guarantee of trading volume.
• D)intervention on the trader's behalf with government regulators.
• E)availability of free legal services.

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Definitions:

P-Value

The odds of encountering test findings at least as extreme as the observed ones, given that the null hypothesis is accurate.

Hypothesis Testing

A statistical method that uses sample data to evaluate a hypothesis about a population parameter, leading to a decision to accept or reject the hypothesis.

Test Statistic

A numerical value calculated from a sample of data used in statistical testing to determine whether to reject the null hypothesis.

T-Distribution

A probability distribution used in statistics, especially in scenarios with small sample sizes, that is symmetric, bell-shaped, and slightly thicker and longer-tailed than the normal distribution.