Use the Following to Answer the Question(s) Below

question 26

Multiple Choice

Use the following to answer the question(s) below.
Three brands of AAA batteries are compared to determine if differences in lifetime exist. Each brand is tested in four devices (TV remote, hand-held game, flashlight and digital camera) . The experiment is run once for each combination of brand and device. The twelve runs are ordered randomly. The time (in minutes) that each battery lasts under continuous usage is recorded. The partial ANOVA results are as follows:
-The P-value associated with this F-statistic associated with the brands is 0.128. Based on this, we can conclude that

• A) we should reject the null hypothesis.
• B) there is a difference in the mean lifetimes among the different brands.
• C) there is no significant difference in the mean lifetimes among the different devices.
• D) we should support the alternative hypothesis.
• E) there is no difference in the mean lifetimes among the different brands.

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Definitions:

Hedge Ratio

The Hedge Ratio is a risk management tool that compares the value of a position protected through a hedge to the size of the entire position.

Long Put Option

A financial derivative strategy that gives the holder the right, but not the obligation, to sell a specific amount of an underlying asset at a predetermined price within a specified timeframe.

Binomial Option Model

A mathematical model used to price options by breaking down the time to expiration into potentially infinite segments or steps.

Subintervals

Divisions within a larger interval, often used in mathematics to partition an interval into smaller segments.