As Your Sample Size Gets Smaller (Especially as It Gets

question 151

Multiple Choice

As your sample size gets smaller (especially as it gets below about 30-40) ,the t-distribution and the z-distribution

• A)are both unaffected
• B)become more and more alike
• C)become more and more different
• D)give more similar probability values

---

Definitions:

Unbiased Forward Rate

An estimate of future spot interest rates implied by current interest rates, under the assumption that the forward rates are an unbiased predictor of future spot rates.

Future Spot Rate

The anticipated price of an asset at a future date in a spot transaction, which involves the immediate settlement of the transaction.

Spot Rate

The present market value at which a specific currency can be purchased or exchanged for instant delivery.

Interest Rate Parity

A theory stating that the difference in interest rates between two countries is equal to the difference between the forward exchange rate and the spot exchange rate.