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If the Error Variable ε\varepsilon Is Normally Distributed,the Test Statistic for Testing H0

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If the error variable ε\varepsilon is normally distributed,the test statistic for testing H0: β\beta 1 = 0 has a Student t-distribution with n - 2 degrees of freedom.


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The current value of a future sum of money or stream of cash flows given a specific rate of return.

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