An Open Account Means

question 351

Multiple Choice

An open account means:

• A) multiple payments are made on a regular schedule
• B) minimum monthly payments are made on an account balance
• C) half payment is due when the invoice is received
• D) full payment is due within a fixed time period
• E) the borrower may borrow up to the full amount of the credit limit

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Definitions:

Multinomial Proportions

Relative frequencies of outcomes from a multinomial distribution, often used to describe the proportion of outcomes in categorical data.

One-tail Test

A statistical test where the alternative hypothesis specifies a direction of the tested effect.

Z-test

A statistical method employed to ascertain if there's a difference between the means of two populations when the variances are established and the sample size is significant.

Chi-square Goodness-of-fit

A statistical test that measures how well observed sample data fit the expected distribution from a given hypothesis.