Which of the Following Is Not a Characteristic of a Chi-Square

question 13

Multiple Choice

Which of the following is not a characteristic of a chi-square distribution?

• A)The chi-square distribution is different for each number of degrees of freedom.
• B)The values of a chi-square distribution cannot be negative.
• C)As the number of degrees of freedom increases, the chi-square distribution approaches a normal distribution.
• D)All of the other statements are characteristics of a chi-square distribution.

---

Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically paying fixed dividends.

Cost of Retained Earnings

The opportunity cost for a company of using its retained earnings as a source of finance for new investments, often estimated using the cost of equity.

Growth Rate

The rate at which a company's sales, earnings, dividends, or assets increase over a specified period.

Recent Dividend

The latest distribution of a portion of a company's earnings to its shareholders.