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If an Observed Z or T Score Is Greater Than

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If an observed z or t score is greater than the critical value,we would reject the null hypothesis.


Definitions:

Availability Float

The time difference between when a check is deposited in a bank account and when the funds are made available.

Miller-Orr Model

A financial model used to manage cash balances by setting upper and lower limits on cash reserves, triggering buying or selling of securities when these thresholds are crossed.

Safety Stock

Safety stock is additional inventory held by a business to prevent stockouts caused by variations in supply and demand.

Cash Flow

Cash Flow refers to the net amount of cash being transferred into and out of a business, indicating the company's liquidity over a certain period.

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