Given Below Are the Analysis of Variance Results from a Minitab

question 139

Multiple Choice

Given below are the analysis of variance results from a Minitab display._ to use a 0.05 significance level in testing the null hypothesis that the different samples come
From populations with the same mean. What can you conclude about the equality of the
Population means? $$\begin{array} { l | r | c | c | c | c } \text { Source } & \boldsymbol { D F } & \boldsymbol { S S } & \boldsymbol { M S } & \boldsymbol { F } & \boldsymbol { p } \\\hline \text { Factor } & 3 & 13.500 & 4.500 & 5.17 & 0.011 \\\hline \text { Error } & 16 & 13.925 & 0.870 & & \\\hline \text { Total } & 19 & 27.425 & & &\end{array}$$

• A)Reject the null hypothesis since the P-value is greater than the significance level.
• B)Accept the null hypothesis since the P-value is less than the significance level.
• C)Accept the null hypothesis since the P-value is greater than the significance level.
• D)Reject the null hypothesis since the P-value is less than the significance level.

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Definitions:

Volatility Risk

The risk in the value of options portfolios due to unpredictable changes in the volatility of the underlying asset.

Hedge Ratio

A ratio used to measure the proportion of a position that is hedged or the amount of assets used to hedge a risk exposure.

Dynamic Hedging

Constant updating of hedge positions as market conditions change.

Delta Neutral

The value of the options portfolio is not affected by changes in the value of the underlying asset.