If a Payout Is Certain to Occur,then the Variance of That

question 117

Multiple Choice

If a payout is certain to occur,then the variance of that payout equals

• A) zero.
• B) one.
• C) the expected value.
• D) the expected value squared.

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Definitions:

Body Mass Index

Body Mass Index, or BMI, is a numerical computation involving a person's weight and height, used to categorize individuals into different weight status categories, such as underweight, normal weight, overweight, and obese.

Hypothesis

An assumption made before any research has been conducted for the purpose of testing.

Critical Value

A point on a statistical distribution that represents a threshold at which the null hypothesis is either rejected or not rejected.

Hypothesis Test

A statistical method that uses sample data to evaluate a hypothesis about the properties of a population.