If the Populations Are Normally Distributed but the Population Variances

question 86

True/False

If the populations are normally distributed but the population variances are unknown the t-statistic can be used as the basis for statistical inferences about the difference in two population means using two independent random samples.

---

Definitions:

Total Leverage

The combined effect of using both operating and financial leverage on a company's earnings per share.

Financial Leverage

Employing leveraged capital to enhance the expected returns on an investment.

Operating Leverage

The degree to which a company uses fixed operating costs, whereby a small change in sales significantly affects profitability.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales volume, emphasizing the impact of fixed costs.