The Spot Price on Cocoa Is $3,540 a Ton

question 61

Multiple Choice

The spot price on cocoa is $3,540 a ton.The futures price is $3,480 a ton.The basis is ________ and the market is a(n) ________ market.

• A) -60; carrying-charge
• B) -60; inverted
• C) 20; inverted
• D) 60; carrying-charge
• E) 60; inverted

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Definitions:

Confidence Interval

A range of values, derived from statistical analysis, that is likely to contain the value of an unknown parameter with a specified level of confidence.

Null Hypothesis

A theory that assumes there is no statistical significance in a set of given observations, with the aim of testing the validity of this assumption.

Student-t

A probability distribution used in statistical science, particularly in scenarios with small sample sizes or unknown variances.

F-distribution

A probability distribution that arises in the testing of whether two sample variances are equal, used in ANOVA and other tests involving multiple variances.