The Stock Market Has a 5-Day Working Week

question 113

Multiple Choice

The stock market has a 5-day working week. If we wanted to measure the impact of the day of the week on stock market performance, we would need:

• A)seven indicator variables.
• B)six indicator variables.
• C)five indicator variables.
• D)four indicator variables.

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Definitions:

Pearson's Product-moment Correlation Coefficient

A measure of the linear correlation between two variables X and Y, providing a value between +1 and -1 inclusive.

Frequency Distribution

A method for illustrating how often scores occur in groups called class intervals.

Frequency Polygon

A graphical representation of a frequency distribution that uses a continuous line to show the number of values that fall within a class interval.

Histogram

A graphical representation of a frequency distribution that uses bars of different heights to show the number of values that fall within each class interval.