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.

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