From a Population That Is Not Normally Distributed and Whose

question 44

Multiple Choice

From a population that is not normally distributed and whose standard deviation is not known, a sample of 6 items is selected to develop an interval estimate for the mean of the population (μ) .

• A) The normal distribution can be used.
• B) The t distribution with 5 degrees of freedom must be used.
• C) The t distribution with 6 degrees of freedom must be used.
• D) The sample size must be increased.

---

Definitions:

Call Provisions

Conditions under which a bond issuer can retire the bond before it matures.

Interest Rates

It denotes the cost, specified as a percentage of the principal, imposed on borrowers by lenders for the privilege of using their assets.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.

Debentures

Long-term securities issued by a company that are not secured by physical assets or collateral but by the general credit of the issuer.