In Testing the Difference Between Two Population Means, Which of the Following

question 95

Multiple Choice

In testing the difference between two population means, which of the following assumptions is not true for the two-sample procedure that uses a pooled estimate of the common variance ?

• A) The two samples must be independent of each other.
• B) The two samples must be small and selected at random from the populations.
• C) The populations from which the samples are drawn must be t-distributed.
• D) The population variances should be equal or nearly equal.
• E) None of these.

---

Definitions:

Effective Interest Method

An accounting technique used to allocate the interest expense or income of a bond over its life in a way that yields a constant rate of return.

Interest Expense

The cost incurred by an entity for borrowed funds, which is considered a non-operating expense on the income statement.

Semiannually

Occurring twice a year, typically used in the context of payments, interest accruals, or reporting periods.

Effective-interest Method

A method of amortizing bond discounts or premiums that reflects the constant rate of interest over the life of the bond with respect to its carrying value at the beginning of each interest period.