Which of the Following Statements About the T Distribution Is

question 19

Multiple Choice

Which of the following statements about the t distribution is correct?

• A)It is skewed.
• B)In small samples it is narrower than the normal distribution
• C)It follows an exponential curve.
• D)As the degrees of freedom increase, the distribution becomes closer to normal

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Definitions:

Screening Decision

A decision as to whether a proposed investment project is acceptable.

Internal Rate

Often referred to as the internal rate of return (IRR), it is a rate of return used in capital budgeting to measure and compare the profitability of investments.

Cash Flows

The cumulative sum of funds moving into and away from a company, influencing its ability to cover short-term obligations.

Payback Period

Payback period is the duration it takes for an investment to recover its initial outlay, measured from the point of investment.