Dr Johnson Is Trying to Establish Norms for His New

question 81

Multiple Choice

Dr. Johnson is trying to establish norms for his new test. He determined that 50% of the people in the population are Hispanic, 20% are Caucasian, 15% are Asian, and 15% are African American. He uses the same proportions when he creates a

• A)valid test.
• B)representative sample.
• C)random sample.
• D)test population.

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Definitions:

Weighted Average

A weighted average is a calculation that takes into account the varying degrees of importance of the numbers in a data set, providing a measure that reflects their contribution to the overall total.

Coupon

The interest rate stated on a bond when issued, which is typically paid at regular intervals until maturity.

Dividend Payout

The portion of net income a firm pays out to its shareholders as dividends.

Leverage

The use of borrowed funds to increase one's investment capacity and potentially increase the rate of return on equity.