Which of the Following Statistical Distributions Is Used When Estimating

question 105

Short Answer

Which of the following statistical distributions is used when estimating the population mean when the population variance is unknown? $\begin{array}{|l|l|}\hline A&\text {Student \( t \) distribution }\\\hline B&\text { Standard normal distribution}\\\hline C&\text { Chi-square distribution}\\\hline D&\text {None of these choices are correct. }\\\hline \end{array}$

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Definitions:

Market Yield

The current yield of a bond or other fixed-income security, calculated by dividing the annual interest income by the current market price.

Par-Value

The face value of a bond or stock as stated by the issuer, which is typically the amount repaid at maturity for bonds.

Modified Duration

A formula used to determine the sensitivity of a bond's price to a 1% change in interest rates, indicating the percentage change in price for each percentage point change in yields.

Market Yield

The current annual income returned on an investment, measured as a percentage of the investment's market price.