Which One of the Following Statements Related to Market Crashes

question 44

Multiple Choice

Which one of the following statements related to market crashes is correct?

• A) Financial market crashes are unique to the United States.
• B) A severe market decline tends to occur over a multi-day period.
• C) Once the market finally crashed in 1929,stock prices began to slowly increase again.
• D) The market crash of 1987 occurred on a day when trading volume was light indicating there were a limited number of irrational investors involved.
• E) Actions in Washington,D.C.may have helped contribute to the market crash in 1929 but not to the 1987 crash.

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Definitions:

Significant

In statistics, indicating that the results of an analysis are unlikely to have occurred purely by chance, at a specified level of probability.

Z-test

A method of statistical analysis that evaluates whether there is a significant difference between the means of two populations, given known variances and a large sample size.

µ = 109

Represents the mean (µ) of a dataset or distribution, here specifically stated as 109.

Z-statistic

A specific kind of norm score that shows the number of standard deviations by which an individual item deviates from the distribution's average.