In Comparing One Test to Another in Terms of Utility,test

question 67

Multiple Choice

In comparing one test to another in terms of utility,test users will evaluate whether

• A) no testing is better than testing.
• B) one tool of assessment is preferable to another.
• C) one particular test is preferable to another.
• D) All of these

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Definitions:

Short Hedger

An investor who enters into contracts or investment positions to reduce the risk of price decreases in an asset they currently own or plan to own.

Basis

In finance, the difference between the spot price of an asset and the future price, or the inverse, depending on the context.

Long Hedger

A long hedger is an investor or company that enters into a hedge transaction to protect against a rise in the price of an asset in the future.

Short Hedger

A short hedger is an investor or trader who enters into contracts to sell an asset in the future to hedge against the risk of falling prices.