The Sum of the Relative Frequencies for All Classes Will

question 63

Multiple Choice

The sum of the relative frequencies for all classes will always equal

• A) the sample size.
• B) 100%.
• C) one.
• D) any value larger than one.

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Definitions:

DSO

Days Sales Outstanding, a financial metric that calculates the average number of days it takes a company to collect payment after a sale has been made.

Compensating Balances

Minimum cash balances that a borrower agrees to maintain in a demand deposit account as a condition for a loan.

Transactions Balance

The amount of money held to facilitate day-to-day financial transactions, reflecting the liquidity needed for regular expenditures.

Loan Requirement

A set of criteria established by lenders that a borrower must meet to qualify for a loan.