One of the Reasons That All Statistically Significant Differences May

question 38

Multiple Choice

One of the reasons that all statistically significant differences may not be meaningful is that,to a great extent,statistical significance is determined by:

• A)competitors who are trying to sabotage research studies.
• B)only a few customers.
• C)statistical formulas that are unstable and unpredictable themselves.
• D)sample size.
• E)data mining software that is too new to be trustworthy.

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Definitions:

Security Market Line

A line that represents the relationship between the risk of an investment and its expected return, based on the capital asset pricing model (CAPM).

Risk-Free Rate

The theoretical rate of return on an investment with no risk of financial loss, often represented by government bonds.

Unsystematic Risk

The type of risk that is specific to a company or industry, stemming from factors like management decisions or regulatory changes, and can be mitigated through diversification.

Limited Number

A restricted quantity, usually referring to a specific allocation or issuance of items, resources, or opportunities.