Exhibit 13

question 78

Multiple Choice

Exhibit 13.6 A researcher wants to understand how annual mortgage payment (in dollars) depends on income level and zonal location using a two-way ANOVA without interaction.The data and an incomplete ANOVA table are shown below. Refer to Exhibit 13.6.How many degrees of freedom are there for factors A and B?

• A)2,3
• B)3,4
• C)3,6
• D)2,4

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Definitions:

Arbitrage Proofs

Strategies or proofs demonstrating the ability to generate risk-free profits by exploiting price differences across markets.

Futures Market

A marketplace where individuals have the opportunity to trade standardized contracts for futures, which are agreements to purchase predetermined amounts of a commodity or financial instrument at an agreed-upon price, with the delivery scheduled for a future date.

CAPM

Capital Asset Pricing Model, a theory used to determine the expected return on investment by correlating the risk of an asset to its expected return.

Exchange Rate

The rate at which one currency can be exchanged for another, usually used in the context of foreign exchange markets.