The Number of Degrees of Freedom in a Chi-Squared Test

question 75

Multiple Choice

The number of degrees of freedom in a chi-squared test for normality,where the number of standardized intervals is 5 and there are 2 population parameters to be estimated from the data,is equal to:

• A)5
• B)4
• C)3
• D)2

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Definitions:

Yield

A measure often used in finance to indicate the earnings generated and realized on an investment over a particular period, expressed as a percentage of the investment's cost.

Price

The sum of money needed to buy a product, service, or property.

Coupon Bond

A bond that entitles the holder to receive a fixed interest payment (coupon) at regular intervals until maturity, at which point the principal is repaid.

Yield To Maturity

The expected overall yield on a bond when it is kept until it matures.