The Degrees of Freedom for the T Statistic to Test

question 48

Multiple Choice

The degrees of freedom for the t statistic to test the hypothesis about two independent samples is ________.

• A) n
• B) n1 +n2 ^{- 2}
• C) n - 1
• D) n1 + n2

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Definitions:

Discount Rate

The interest rate used in discounted cash flow (DCF) analyses to determine the present value of future cash flows.

Simple Rate

An interest calculation method where the interest charge is calculated only on the principal amount, without compounding.

Net Operating Income

A company's income after operating expenses have been subtracted but before income taxes and interest are deducted.

Initial Investment

The amount of money used to start a project, purchase an asset, or initiate operations in a business.