Goods Tend to Have More Elastic Demand Over Shorter Time

question 159

True/False

Goods tend to have more elastic demand over shorter time horizons.

Explain the concept of basis and its convergence to zero at contract maturity.

Calculate and identify arbitrage opportunities in futures markets.

Understand the scale and components of the swap market within the derivatives market.

Recognize the importance and use of leverage in futures markets.

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Definitions:

Null Hypothesis

In statistical testing, it is the default assumption that there is no difference or effect, intended to be either rejected or not rejected based on data.

Type II Error

The error that occurs when a false null hypothesis is not rejected, also known as a false negative.

P Value

In hypothesis testing, the probability that the observed data (or a more extreme) would occur if the null hypothesis were true.

Hypothesized Reason

A proposed explanation based on limited evidence as a starting point for further investigation or experiment.