Which Inferential Statistical Test Is Used to Examine the Relationship

question 2

Multiple Choice

Which inferential statistical test is used to examine the relationship that exists between two or more variables?

• A) The t-test
• B) Chi-square
• C) Analysis of variance (ANOVA)
• D) Pearson correlation coefficient

---

Definitions:

Maturity

The point in time when the principal amount of a financial instrument becomes due and is to be paid.

Accrual Earnings

The earnings of a company that are calculated based on accrual accounting, which records revenues when earned and expenses when incurred, regardless of cash flow.

Realized Operating Cash Flows

Cash flows that are generated from a company's normal business operations and have been received or can be readily converted to cash.

Stock Returns

The total return on investment from owning shares in a company, including dividends received and capital gains.