An Informal Test for Normality That Utilizes a Scatterplot and Looks

question 20

Multiple Choice

An informal test for normality that utilizes a scatterplot and looks for clustering around a 45° line is known as a(n)

• A)Lilliefors test.
• B)empirical cumulative distribution function.
• C)p-test.
• D)quantile-quantile plot.

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Definitions:

Dividend Income

Earnings obtained by holding company shares, typically dispensed from the firm's earnings.

Optimal Dividend Policy

The best strategy a company can adopt for the payment of dividends, balancing between retaining earnings for growth and satisfying shareholders.

Residual

The amount remaining after the greater part has been deduced; in finance, often refers to the residual value or remaining interest in an asset.

Stock Splits

occur when a company divides its existing stock into multiple shares to boost the liquidity of the shares, though the overall value of the company doesn't change.