When the Independent Variable Is Qualitative and the Dependent Variable

question 71

Multiple Choice

When the independent variable is qualitative and the dependent variable is quantitative,the choice of the appropriate method of data analysis depends on

• A)whether a parametric or nonparametric test is desired.
• B)whether the independent variable is between-subjects or within-subjects in nature.
• C)the number of levels that characterize the independent variable.
• D)all of these

---

Definitions:

Duration

A measure of the sensitivity of the price of a bond or a fixed income portfolio to changes in interest rates.

Interest-Rate Risk

The possibility of incurring losses in investments as a result of variations in interest rates, especially impacting fixed-income securities.

Coupon

The interest rate paid by a bond, usually expressed as a percentage of the bond's face value.

Cash Flow Matching

A form of immunization, matching cash flows from a bond portfolio with those of an obligation.