Which of the Following Factors Contributed to the Crash of 1987

question 24

Multiple Choice

Which of the following factors contributed to the Crash of 1987?
I. irrational investors
II. program trading
III. panic selling
IV. price uncertainty

• A)II and IV only
• B)I, II, and III only
• C)I, II, and IV only
• D)II, III, and IV only
• E)I, II, III, and IV

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Definitions:

Z

In statistics, typically refers to a standard score indicating how many standard deviations an element is from the mean.

Null Hypothesis

A hypothesis in statistical analysis that assumes no significant difference or effect exists between certain characteristics, conditions, or variables.

Significance Level

The significance level, also known as alpha, is a pre-determined threshold for statistical significance, used to decide whether an observed effect is not due to chance.

P-values

A numerical measure that helps in determining the significance of results obtained in statistical hypothesis testing, indicating the probability of obtaining test results at least as extreme as the ones observed during the test, assuming that the null hypothesis is true.