The Activities of Speculators Are Necessary in the Futures Markets

question 98

Multiple Choice

The activities of speculators are necessary in the futures markets in order to:

• A)Prevent hedgers from trading options
• B)Provide a continual stream of profit to hedgers
• C)Maintain futures prices at appropriate levels
• D)Understand the direction of future price changes

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Definitions:

Population Standard Error

An estimate of how much the sample mean deviates from the actual population mean.

Confidence Interval

An assortment of values, taken from statistical sampling, that is designed to contain the value of a population parameter yet to be identified.

Population Mean

The average value of a characteristic in a population, representing the central tendency of the population data.

Confidence Interval

A confidence interval is a range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter at a given confidence level.