The Futures Markets Are Labeled as Pure Speculation and Even

question 12

Essay

The futures markets are labeled as pure speculation and even gambling. Why is this an inaccurate portrayal of the market's function?

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Definitions:

F-ratio

A statistical test ratio used in the analysis of variance (ANOVA) to determine if the variances between means are significant, typically comparing the variance between groups to the variance within groups.

R

A programming language and free software environment used for statistical computing and graphics.

Significance

The likelihood that an observed effect or relationship in data is not due to chance, typically assessed through statistical tests.

Regression Equation

A mathematical formula that describes the relationship between two or more variables, typically identifying how one dependent variable changes as an independent variable(s) changes.