The Methodology of Technical Analysis Assumes That

question 9

Multiple Choice

The methodology of technical analysis assumes that

• A) forecasting the economy is a critical ingredient to financial analysis
• B) forecasting the firm's earnings is most critical to financial analysis
• C) it is useless to attempt to "beat the market"
• D) history tends to repeat itself in the stock markets

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Definitions:

Margin of Error

A measure of the range of values below and above the sample statistic in a confidence interval within which the true population parameter is expected to lie.

Sample Mean

The mean of a set of samples, obtained by adding all the values together and then dividing by the total count of observations.

Weekdays

The days of the week typically considered as working days, usually Monday through Friday, excluding the weekend.

Sampling Distribution

A statistical function that describes all the possible values and likelihoods that a statistic can take within a given range.