List the Advantages and Disadvantages of Holding Futures Rather Than

question 10

Essay

List the advantages and disadvantages of holding futures rather than the underlying commodity.

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Definitions:

Confidence Interval

An estimated range of values calculated from a given set of data, predicting where an unknown population parameter might fall with a certain degree of confidence.

P-value

A statistical measure that helps to determine the significance of results obtained in hypothesis testing, indicating the probability of observing results at least as extreme as those observed, under the assumption that the null hypothesis is true.

Smoking Status

A classification of individuals based on their usage of tobacco products, typically categorized into current smoker, former smoker, and never smoked.

P-value

A statistical measure that indicates the probability of the observed data under the assumption that the null hypothesis is true.