When Testing for the Significance of the Difference Between Two

question 47

Multiple Choice

When testing for the significance of the difference between two samples,which is the proper assumption for step 1?

• A)random sampling
• B)ordinal level of measurement
• C)degrees of freedom are zero
• D)samples are independent as well as random

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Definitions:

Call Premiums

The amount by which the price of a callable bond or preferred stock exceeds its par value or redemption price, often stipulated as a penalty for early redemption by the issuer.

Coupon Rates

Interest rates specified on bonds or other fixed-income securities that issuers promise to pay bondholders annually, expressed as a percentage of face value.

Convertible Bonds

Bonds that can be converted into a predetermined amount of the company's equity at certain times during their life, usually at the discretion of the bondholder.

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, accounting for interest payments and the capital gain or loss.