A Certain Baseball Player Has a Hit 10 Times in Every

question 1

Multiple Choice

A certain baseball player has a hit 10 times in every 30 times at bat on average. Assume that having a hit is a random event. Which of the following experiments would not simulate this situation?

• A)Choose the first 30 digits from a row in the random number table.Designate odd numbers to mean "hit" and even numbers to mean "non-hit".
• B)Flip a coin thirty times.Designate a head to mean "hit" and a tail to mean "non-hit".
• C)All of the above will simulate the number of hits.
• D)None of the above will simulate the number of hits.

---

Definitions:

Deltas

In options trading, deltas measure the rate of change of the option's price relative to a one-unit change in the price of the underlying asset, indicating how the price of the option is expected to move.

Portfolio Hedge Ratios

Ratios used to determine the appropriate amount of hedging needed to minimize risk in an investment portfolio, often through derivatives like options or futures.

Dynamic Hedging

A strategy that involves periodically adjusting the quantities of instruments used in a portfolio to hedge against risk as market conditions change.

Out-of-the-money

A term used in options trading to describe an option that has no intrinsic value. A call option is out-of-the-money if the stock price is below the strike price, and a put option is out-of-the-money if the stock price is above the strike price.