A Sample of 41 Observations Yielded a Sample Standard Deviation $\sigma$

question 48

Multiple Choice

A sample of 41 observations yielded a sample standard deviation of 5. If we want to test H₀: $\sigma$ ² = 20, the test statistic is

• A)100
• B)10
• C)51.25
• D)50

---

Definitions:

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Liquidity Ratios

Measures of a firm’s ability to meet its short-term obligations.

Short-Term Obligations

Financial liabilities that are due to be paid within a short timeframe, typically less than one year.

Activity Ratios

Measures of how efficiently a firm utilizes its assets.