A Study Wants to Investigate Whether the Population Variance Is

question 2

Short Answer

A study wants to investigate whether the population variance is greater than 8, if a random sample of size 40, yielded a variance of 10. Which of the following is the correct value of the test statistic? $\begin{array}{|l|l|}\hline\text { A } & 50 \\\hline \text { B } & 1.25 \\\hline \text { C } & 48.75 \\\hline \text { D } & 31.2 \\\hline\end{array}$

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Definitions:

Exercise Price

The price at which the underlying security can be purchased (call option) or sold (put option) when exercising an option contract, synonymous with striking price.

European Put Option

A type of put option that can only be exercised at its expiration date, not before, contrasting with American options which can be exercised at any time before expiry.

Expiration Date

The set date on which a derivative contract such as an option or futures expires or ceases to exist.