If We Are Testing for the Difference Between Two Population

question 61

Short Answer

If we are testing for the difference between two population means and assume that the two populations have equal and unknown standard deviations, the standard deviations are ______ to compute a point estimate of the population variance.

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Definitions:

Cumulative Return

Cumulative return is the aggregate amount of money gained or lost by an investment over a set period, typically expressed as a percentage.

Initial Margin

The portion of the purchase price that an investor must deposit when buying securities on margin; serves as a down payment on the investment.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, to keep the account open.

Long Futures Position

Holding a futures contract that obligates the buyer to purchase the underlying asset at a specified price on a specified future date, typically anticipating a price rise.