A Private University Is Trying to Determine If There Is

question 26

Multiple Choice

A private university is trying to determine if there is pay equity among the male and female faculty.A simple random sample of six faculty members was selected from each gender group and the salary was recorded.The data (in thousands) are shown below. Rank all of the observations together.What is the list of ranks for the female group?

• A)10,3,4,7,9,1
• B)6,12,2,5,11,8
• C)6,2,3,4,5,1
• D)None of the above

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Definitions:

Underlying Stock

The specific stock that represents the equity interest in which options, futures, or other derivatives contracts are based on.

Risk-Free Asset

An investment with a guaranteed return and no risk of default, often represented by government bonds from stable governments.

Strike Price

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

Call

An option contract that gives the holder the right to purchase a stock, commodity, or other assets at a specified price within a specific time period.