If the Expected Frequency E_i for Any Cell I Is

question 54

Multiple Choice

If the expected frequency e_i for any cell i is less than 5,we should:

• A)choose another sample with five or more observations.
• B)use the normal distribution instead of the chi-squared distribution.
• C)combine cells such that each observed frequency f_i is 5 or more.
• D)increase the degrees of freedom by 5.

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be eliminated through diversification, often related to economic, political, or social factors.

Market Risk

Variation on the return on a stock investment caused by things that tend to affect all stocks.

Stand-Alone Risk

The risk associated with investing in a stock that’s held by itself, outside of a portfolio. Stand-alone risk depends on the volatility of a stock’s own return rather than on the effect its inclusion has on the volatility of the return of a portfolio.

Business Risk

The potential for loss or failure in the operation of a company, often due to external and internal factors.