Which of the Following Is True of the T-Distribution

question 22

Multiple Choice

Which of the following is true of the t-distribution?

• A) It has narrower confidence intervals than the standard normal distribution.
• B) It is only used to calculate confidence intervals where there is no known population standard deviation.
• C) It converges to the standard normal distribution as degrees of freedom increase.
• D) It does not require parameters such as degrees of freedom.

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Definitions:

Diseconomies of Scale

The condition in which a company's costs per unit increase as it produces more units, typically due to inefficiencies that arise with increased size or output.

Diminishing Marginal Returns

A principle stating that as additional units of a variable input are added to a fixed input, the additions to output will eventually decrease.

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Total Cost

The aggregate of expenses related to the manufacturing of products or provision of services, which includes costs that stay the same as well as those that vary.