Why Are T Statistics More Variable Than Z-Scores?​

question 10

Multiple Choice

Why are t statistics more variable than z-scores?​

• A)​The extra variability is caused by variations in the sample mean.
• B)​The extra variability is caused by variations in the sample variance.
• C)​The extra variability is caused by variations in the df value.
• D)​The extra variability is caused by the large sample size.

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Definitions:

Expected Rate

The anticipated return on an investment under normal circumstances, often estimated based on historical data and analysis.

Capital Asset Pricing Model

A framework that explains the connection between inherent risk and anticipated return on investments, especially in the context of equities.

Beta

A measure of a stock's volatility in relation to the overall market, indicating how much the stock price is expected to fluctuate.

Arbitrage Pricing Theory

A financial model that determines the theoretical return of an asset by considering multiple macro-economic factors or theoretical market indices.