Using a Significance Level of 0 A)not Related
B)related

question 31

Multiple Choice

Using a significance level of 0.05, test the claim that the two variables are independent. State whether the variables are related or not related.
-Responses to a survey question are broken down according to employment status and the sample results are given below. $$\begin{array} { l | r c c } & \text { Yes } & \text { No } & \text { Undecided } \\\hline \text { Employed } & 30 & 15 & 7 \\\text { Unemployed } & 20 & 25 & 10\end{array}$$

• A)not related
• B)related

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Definitions:

Diversification Benefits

The advantages gained by investing in a variety of assets to reduce risk in a portfolio.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Minimum-Variance Portfolio

An investment portfolio designed to achieve the lowest possible risk level for its expected rate of return.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, commonly used to quantify the risk of a financial instrument.