Which of the Statements Correctly Compares T-Distributions to the Normal

question 50

Multiple Choice

Which of the statements correctly compares t-distributions to the normal distribution?
I. t distributions are also mound shaped and symmetric.
II. t distributions have less spread than the normal distribution.
III. As degrees of freedom increase, the variance of t distributions becomes smaller.

• A) I, II, and III
• B) II only
• C) I only
• D) I and II only
• E) I and III only

---

Definitions:

Investor Expectations

The assumptions or forecasts made by investors about future performance or trends of a particular security, market, or the economy as a whole.

Deficit

A debit balance in the retained earnings account.

Retained Earnings

The portion of net earnings not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.

Treasury Stock

Shares that were once issued and outstanding but were subsequently repurchased by the company, reducing the number of shares on the market.