A Factorial Design Has Two Levels of Factor a and Three

question 21

Multiple Choice

A factorial design has two levels of factor A and three levels of factor B with six participants in each condition. The F-ratio for factor B would have _____ degrees of freedom.

• A)1, 35
• B)1, 30
• C)2, 35
• D)2, 30

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Definitions:

Nondiversifiable Risk

A type of risk that affects all investments across the market and cannot be eliminated through diversification.

Diversifiable Risk

A type of investment risk that can be reduced or eliminated in a portfolio through diversification, as it is not correlated with market movements.

Risk Premium

The extra return expected by an investor for holding a risky asset, over and above the risk-free rate.

Discount Rate

The interest rate used in calculating the present value of future cash flows. It reflects the time value of money and risk.