When a Statistical Test Is Described as "Robust," It Means

question 14

Multiple Choice

When a statistical test is described as "robust," it means that the test

• A) is easy to compute without the help of a computer.
• B) is unlikely to result in a Type II error.
• C) requires the use of all actual case values for its computation
• D) still produces accurate results if not all of its assumptions for use can be met.

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Definitions:

Sinking Fund Provisions

A requirement for a debtor to set aside funds at regular intervals to repay a bond or loan before its maturity in order to ensure the safety of the investment for creditors.

Bond Issue

The process by which a government or corporation raises funds by issuing bonds to investors, who lend them money in exchange for periodic interest payments and the return of principal at maturity.

Call Provision

A feature of a bond or other fixed-income security that allows the issuer to repurchase and retire the debt before its maturity date.

Par Value

The face value of a bond or stock as stated by the issuer, which is not necessarily indicative of its market value.