As You Increase the Time Per Interval in a Binomial

question 48

True/False

As you increase the time per interval in a binomial model, the result will approach the Black-Scholes model.

---

Definitions:

Sample Size

The number of observations or subjects selected from a population for a study.

T Distribution

A statistical distribution used when the sample size is small and the population standard deviation is unknown.

One-tailed Test

A hypothesis test in which the region of rejection is on only one side of the sampling distribution, used when assessing the direction of a relationship.

Degrees Of Freedom

The scope of unique values or measurements which can be applied to a statistical distribution.