A Simple Way to Generate Some Idea Whether Data Are

question 24

Multiple Choice

A simple way to generate some idea whether data are likely to be heteroskedastic is to

• A)examine the residual plot.
• B)construct a histogram.
• C)calculate the variance of the sample.
• D)plot the data points from smallest to largest.

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Definitions:

Treasury STRIPS

Separate Trading of Registered Interest and Principal of Securities; bonds that are dissected into individual principal and interest payments and sold separately.

Treasury Bond

A long-term government debt security with a fixed interest rate and maturity of more than ten years.

Treasury Bond

Long-term, fixed interest government debt securities with a maturity of more than ten years.

STRIPPED Cash Flows

Cash flows from financial instruments that have been separated from their financial structure, often used in securitization.