What Is the Relationship, If Any, Between the Normal and T-Distributions

question 11

Multiple Choice

What is the relationship, if any, between the normal and t-distributions?

• A) A t-distribution with zero degrees of freedom is a normal
• B) A t-distribution with one degree of freedom is a normal
• C) A t-distribution with infinite degrees of freedom is a normal
• D) There is no relationship between the two distributions.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor expenses.

Variable Cost

Expenses incurred by a business that vary directly with the level of production or sales volume, such as cost of goods sold.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used to assess the profitability of investments.

Discount Rate

An interest rate used by central banks to lend money to commercial banks, intended to influence the broader economy.