A Data Normalization Technique for Real-Valued Attributes That Divides Each

question 6

Multiple Choice

A data normalization technique for real-valued attributes that divides each numerical value by the same power of 10.

• A) min-max normalization
• B) z-score normalization
• C) decimal scaling
• D) decimal smoothing

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Definitions:

Value

The worth of an asset or service, determined by factors such as market demand, utility, and costs of production.

Black-Scholes

A mathematical model used to price European style options, estimating the variation over time of financial instruments.

European Options

Derivative securities that can only be exercised at the expiration date, not before, contrasting with American options which can be exercised at any point before expiration.

Pricing Model

A theoretical construct that uses mathematical formulas to estimate the appropriate price of a security or asset.