A Stock's Price Has Been Relatively Constant for an Extended

question 10

Multiple Choice

A stock's price has been relatively constant for an extended period of time.In this instance,the Bollinger bands are:

• A) relatively close to each other.
• B) non-existent.
• C) vertical.
• D) steeply upsloping.
• E) steeply downsloping.

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Definitions:

Null Hypothesis

A hypothesis in statistical testing that there is no effect or no difference, and any observed deviation is due to sampling or experimental error.

Significance Level

A threshold below which a p-value is considered statistically significant, indicating that observed results are unlikely to be due to chance.

Critical Value

The point or points on the scale of a test statistic beyond which we reject the null hypothesis; these values define the threshold of significance.

Test Statistic

A value, derived from sample data, used in a hypothesis test to determine whether to reject the null hypothesis.