A Stockmarket Trader Conducted a Bayesian Analysis of Variations in Skirt

question 16

Multiple Choice

A stockmarket trader conducted a Bayesian analysis of variations in skirt length and stock market growth. He calculated a Bayes factor of 1. Should he use skirt length as a predictor of stock market growth?

• A) Yes, a Bayes factor of 1 suggests that it is worth heavily investing in the stock market based on skirt length variations.
• B) No, a Bayes factor of 1 suggests that the data is corrupted.
• C) Yes, a Bayes factor of 1 suggests that it is worth a small investment in the stock market based on skirt length variations.
• D) No, a Bayes factor of 1 suggests that it is not worth investing in the stock market based on skirt length variations.

---

Definitions:

IR Absorption

The process where molecules absorb specific frequencies of infrared light, causing molecular vibrations that are characteristic of functional groups within the molecule.

Broad Absorption

A phenomenon where a material or molecule absorbs a wide range of wavelengths or frequencies.

IR

Short for Infrared Spectroscopy, a technique used to identify and study chemicals by analyzing the infrared light absorbed by molecules.

Carbonyl

A functional group characterized by a carbon atom double-bonded to an oxygen atom (C=O), central to many organic reactions and compounds.