Use the Table for the Question(s) Below

question 39

Multiple Choice

Use the table for the question(s) below.
Consider the following realized annual returns:

-The variance of the returns on the S&P 500 from 1996 to 2005 is closest to:

• A) 0.0450
• B) 0.3400
• C) 0.1935
• D) 0.0375

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Definitions:

Rejection Region

The range of values in hypothesis testing outside of which the null hypothesis is rejected in favor of the alternative hypothesis.

Categorical Variables

Categorical variables are qualitative variables that can take on different categories, but which do not have a natural order or ranking.

Degrees Of Freedom

The number of independent values or quantities that can vary in the analysis without violating any constraints.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive."