It Is Most Appropriate to Report Effect Size with a Significant

question 13

Multiple Choice

It is most appropriate to report effect size with a significant result.Why is it generally inappropriate to report effect size with nonsignificant results?

• A) Because insignificant results will always have an effect size equal to 0.
• B) Because insignificant results indicate that an effect size is also not significant.
• C) Because it makes little sense to report the size of an effect that you just concluded doesn't exist.
• D) Because the probability of the size of an effect varies depending on the significance of the effect size measure.

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Definitions:

Exercise Price

The predetermined price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase a stock or other asset at a specified price within a specified time.

Risk-free Rate

Often considered as the return on government securities, it represents the interest an investor would expect from an absolutely risk-free investment over a specified period.

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified period.