I the Student T Distribution Has a Greater Spread Than

question 36

Multiple Choice

i. The Student t distribution has a greater spread than does the z distribution. As a result, the critical
Values of t for a given level of significance are larger in magnitude than the corresponding z critical
Values.
ii. The test statistic t has n-1 degrees of freedom.
iii. William S. Gosset, a brewmaster, developed the t test for the Guinness Brewery in Ireland, who
Published it in 1908 using the pen name "Student."

• A) (i), (ii), and (iii) are all correct statements.
• B) (iii) is a correct statement but not (i) or (ii).
• C) (i) and,(iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Equity Method

An accounting technique used to record the investments in other companies where the investor has significant influence but does not have full control.

Gross Profit

The difference between revenue and the cost of goods sold before accounting for other expenses.

Intra-Entity Sales

Transactions of goods, services, or assets between divisions within the same organization.

Significant Influence

The capacity to affect the financial and operating policies of another entity without having control or full ownership, often through ownership of a sizable percentage of voting shares.