You Need to Decide Whether You Should Invest in a Particular

question 51

Multiple Choice

You need to decide whether you should invest in a particular stock. You would like to invest if the price is likely to rise in the long run. You have data on the daily mean price of this
Stock over the past 12 months. Your best action is to

• A) compute moving averages
• B) perform exponential smoothing
• C) estimate a least square trend model
• D) compute the MAD statistic

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Definitions:

Behaviour

The actions or reactions of an organism, often in response to its environment.

Behaviourism

A psychological approach that emphasizes the study of observable behavior and the role of environmental forces in shaping it, discounting mental states as primary causes of behavior.

Psychoanalytic Theory

A theory of personality organization and the dynamics of personality development that guides psychoanalysis, founded on the premise that unconscious forces such as unresolved conflicts from childhood shape behavior.

Dehumanising

Actions or processes that deprive individuals or groups of their human qualities, personality, or dignity.