Which One of the Following Statements Is True

question 15

Multiple Choice

Which one of the following statements is true?

• A)Market crashes tend to be accompanied by low market volume.
• B)The Asian market crash was followed by a quick recovery.
• C)The market crash of 1929 and the crash of 1987 are very similar in both the percentage decline in market value and in the ensuing market recovery.
• D)Market crashes tend to follow market bubbles.
• E)Market bubbles and crashes prove that financial markets are inefficient.

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Definitions:

Representative Sample

A subset of a population that accurately reflects the members of the entire population.

Population

The total number of individuals within a species or a designated area at a specific time.

Composition

The arrangement or structure of elements within a work of art, literature, or music that forms a unified whole.

Inferential Statistic

A set of mathematical procedures that allows researchers to infer or draw conclusions about a population based on sample data.