A Chi-Square Test for Independence with 6 Degrees of Freedom

question 36

True/False

A chi-square test for independence with 6 degrees of freedom results in a test statistic of 13.25. Using the chi-square table, the most accurate statement that can be made about the p-value for this test is that p-value is greater than 0.025 but smaller than 0.05.

---

Definitions:

Delta Neutral

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

Elasticity

A measure of how much the demand or supply of a product or service changes in response to a price or income change.

Hedge Ratio

The proportion of a position or investment that is hedged, aiming to reduce risk exposure.

Hedge Ratio

The ratio that compares the value of the position protected via a hedge to the size of the entire position itself.