Which of the Following Is True About Student's T-Models

question 39

Multiple Choice

Which of the following is true about Student's t-models?
I. They are unimodal, symmetric, and bell-shaped.
II. They have fatter tails than the Normal model.
III. As the degrees of freedom increase, the t-models look more and more like the Normal.

• A) I and III
• B) I, II, and III
• C) I only
• D) II and III
• E) I and II

---

Definitions:

Net Cash Flow

The amount of cash that a company generates or consumes over a specific period, taking into account all cash inflows and outflows from operations, investing, and financing.

Lockbox System

A banking service provided to companies for the collection of payment from customers, utilizing a special post office box to speed up deposits.

Cheque Clearing

The process by which banks settle transactions made by cheques, transferring money from the payer's account to the payee's account.

Short-term Financing

Funding obtained to meet immediate to short-term (up to one year) financial obligations and operational expenditures of a business.