Which One of the Following Is the Best Example of Systematic

question 37

Multiple Choice

Which one of the following is the best example of systematic risk?

• A)there is a shortage of nurses
• B)a fire destroys a warehouse
• C)gas prices rise sharply
• D)the cost of sugar increases
• E)two firms merge their operations

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Definitions:

Pooled Estimate

A method in statistics used to combine different estimates of the same parameter to find a single, more precise estimate.

Standard Error

A statistical measure of the variance or standard deviation of a sample mean, indicating the precision with which a sample represents a population.

Assembly Lines

Manufacturing processes in which parts are added to a product in a sequential manner using optimally planned workflows to create a finished product much faster than with traditional methods.

Test Statistic

A value calculated from sample data during a hypothesis test used to determine whether to reject the null hypothesis.