Why Is Crude Oil Considered a Commodity

question 14

Multiple Choice

Why is crude oil considered a commodity?

• A) It is standardized, is worth money, and is mass-produced by several companies.
• B) Oil is a necessity for heating, refining into gasoline, and lubricating machines.
• C) Many plastics and even some shampoos are made from elements of crude oil.
• D) Many modes of transportation rely on oil for fuel and in their transmissions.

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Definitions:

Level of Significance

The probability of rejecting the null hypothesis in a statistical test when it is actually true; a measure of statistical significance.

Sum of Squares

A statistical technique used to describe the total variation in a dataset.

Error

The difference between a measured or observed value and the true value of the quantity of interest.

Normal Probability Distribution

A continuous probability distribution. Its probability density function is bell-shaped and determined by its mean m and standard deviation s.