Which of the Following Approach for Determining the Target Cash

question 75

Multiple Choice

Which of the following approach for determining the target cash balance assumes that the distribution of daily net cash flows is normally distributed, and allows for both cash inflows and outflows?

• A)The Baumol model
• B)The Miller-Orr model
• C)The Merton model
• D)The Interbank Financial model

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Definitions:

Population Parameter

A numerical value that summarizes a characteristic of an entire population.

Random Sampling

A method in statistical analysis where individuals or items are selected from a larger population entirely by chance, ensuring that every member has an equal opportunity of being chosen.

Convenience Sampling

A non-probability sampling method where participants are selected based on their availability and proximity to the researcher.

Judgment Sampling

A sampling method where the samples are selected based on the opinion of an expert, rather than random selection.