The Chi-Square Test to Use for Two Nominal Variables Is

question 61

Multiple Choice

The chi-square test to use for two nominal variables is called the chi-square test for independence because one is assessing:

• A) an assumption of the chi square that the two variables are independent of one another.
• B) whether the dependent variable is related to the independent variable.
• C) whether the effect of each variable is independent of the other variable.
• D) whether the distribution in the sample is independent of the distribution in the population.

---

Definitions:

Put Contract

An options contract that gives the holder the right to sell a specified amount of an underlying security at a specified price within a specified time.

Put Premium

The price that must be paid to purchase a put option, which gives the holder the right but not the obligation to sell a specified quantity of an underlying asset at a set price within a specified time.

Maximum Profit

The highest possible financial gain achievable from an investment or business operation, often estimated under ideal conditions.

Stock-Index Option Markets

Marketplaces where options based on the movements of stock market indices are traded, allowing investors to speculate or hedge against market swings.