Exhibit 5-6 A Sample of 2,500 People Was Asked How Many Cups

question 17

Multiple Choice

Exhibit 5-6
A sample of 2,500 people was asked how many cups of coffee they drink in the morning. You are given the following sample information.
-Refer to Exhibit 5-6. The variance of the number of cups of coffee is

• A).96
• B).9798
• C)1
• D)2.4

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Definitions:

Derivatives

Financial securities whose value is derived from the value of an underlying asset or group of assets, such as futures and options.

Speculative Instruments

Financial instruments that carry a high degree of risk, as they are based on the speculation of future prices rather than fundamental or intrinsic values.

Hedge Risks

Strategies or financial instruments used to offset potential losses or gains that may be incurred by a companion investment.

Significant Liability(ies)

Refers to considerable financial obligations or debts that a company or individual has, which may impact their financial stability or creditworthiness.