Intel Uses Option Contracts for the Right to Purchase Key

question 10

True/False

Intel uses option contracts for the right to purchase key pieces of equipment at a specific future date.They simulate the likelihood that they will need to purchase a specific piece of equipment and then create the options contracts to reduce risk and potentially save money.

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Definitions:

Percentage Points

Percentage points represent the absolute difference between percentages, clarifying changes in percentage rates rather than relative changes.

Level Of Confidence

A statistic that quantifies the degree of certainty or trust in a sampling method’s estimate of the population parameter.

Stratified Random Sampling

A sampling method that involves dividing a population into smaller groups, or strata, and randomly selecting participants from each stratum.

Cluster Sampling

A sampling technique where the population is divided into clusters, and a random sample of these clusters is selected for study.