A Stockmarket Trader Conducted a Bayesian Analysis of Variations in Skirt

question 3

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

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Definitions:

Primary Cell

A voltaic cell that cannot be recharged.

Secondary Cell

A voltaic cell that can be recharged.

Cathode

An electrode through which electrons move outward from the source in an electrical device; in a battery, it's the negative electrode.

Voltaic

Pertaining to electricity or electrical phenomena, especially those produced chemically, e.g., in voltaic cells where chemical energy is converted into electrical energy.