For a Main Effect or an Interaction to Be Significant

question 3

Multiple Choice

For a main effect or an interaction to be significant, what value should the z-score ideally exceed?

• A) 1.96
• B) 2.50
• C) 0.92
• D) 1.30

---

Definitions:

American Call Option

A type of options contract that gives the holder the right, but not the obligation, to buy a specific amount of a security at a specified price within a specified time period.

Underlying Asset

The specific security, commodity, or other financial instrument that a financial derivative, such as an option or futures contract, is based upon.

American Call Option

A financial derivative that gives the buyer the right, but not the obligation, to buy a security at a specified price within a certain time frame.

Exercise Price

The fixed price at which the holder of an options contract can buy (in the case of a call) or sell (in the case of a put) the underlying security or commodity.