If the P- Value for an Estimated Slope Coefficient Is

question 67

Multiple Choice

If the P- value for an estimated slope coefficient is 0.25, using 95 percent confidence, which of the following is true?

• A)You can be 95 percent confident that the true slop coefficient is nonzero.
• B)You should accept the alternative hypothesis that the true value of the coefficient is nonzero.
• C)You should fail to reject the null hypothesis.
• D)You should reject the null hypothesis.

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Definitions:

Stock Put Option

A financial contract giving the buyer the right, but not the obligation, to sell a stock at a specified price within a certain time frame.

Hedge Ratio

A ratio used to measure the amount of exposure reduced in an investment position through the use of a hedging strategy, often involving derivatives such as options or futures contracts.

Put

An options contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a predetermined price within a specified time frame.

Black-Scholes Model

A mathematical model used for pricing European style options, taking into account the stock price, strike price, risk-free rate, time to expiration, and volatility.