What Is a System That Uses Computerized Advisory Programs to Imitate

question 173

Multiple Choice

What is a system that uses computerized advisory programs to imitate the reasoning processes of experts in solving difficult problems?

• A)expert system
• B)virtual reality
• C)neural network
• D)genetic algorithm

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Definitions:

Underlying Stock

Underlying stock refers to the stock upon which a derivative contract, such as an option or futures contract, is based.

Black Scholes Model

A mathematical model used for pricing European call and put options, evaluating the options' theoretical value based on several factors including time, price, volatility, and the risk-free interest rate.

Exercise Price

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

Standard Deviation

A measure of the dispersion or variation in a set of values, indicating how much the numbers in the set deviate from the mean (average).