When Analysing the Result of the Paired Samples T-Test, the Output

question 18

Multiple Choice

When analysing the result of the paired samples t-test, the output presents the following box, but what do the results show you?

• A) The correlation value between the two variables is strong, statistically significant and therefore correct to use.
• B) The correlation value between the two variables is moderate, but not statistically significant and therefore should not have been used.
• C) The correlation value between the two variables is weak and not statistically significant and therefore should not have been used.
• D) The correlation value between the two variables is weak, but statistically significant and therefore correct to use.

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Definitions:

Market Neutral

An investment strategy that seeks to avoid some forms of market risk by taking offsetting positions in different securities, aiming for a net market exposure of zero.

Government Regulation

The act of controlling business behavior through a set of rules or laws set forth by the government to achieve outcomes that might not be achieved through free markets.

Incentive Fee

An incentive fee is a fee charged by a fund manager based on the fund's performance, encouraging the manager to achieve superior returns.

Benchmark

A standard or point of reference against which the performance of a security, mutual fund, or investment manager can be measured.