A Chi-Square Goodness-Of-Fit-Test Is to Be Performed to See If

question 41

Multiple Choice

A chi-square goodness-of-fit-test is to be performed to see if data fit the Poisson distribution.There are 5 categories,and the parameter λ must be estimated.How many degrees of freedom should be used?

• A)5
• B)4
• C)3
• D)2

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Definitions:

Fair Value Hedge

A financial hedge that is used to mitigate the risks associated with the changes in the fair value of assets or liabilities or an identified portion of such assets or liabilities.

Discount Recognized

Discount Recognized refers to the process of acknowledging a reduction from the nominal value of a financial instrument when it is realized or accounted for.

Foreign Exchange Gain

A profit arising from an increase in the value of one currency relative to another in the foreign exchange markets.