The Result of Placing a Larger Sample Variance in the Numerator

question 26

Multiple Choice

The result of placing a larger sample variance in the numerator of the F_(df1,df2) statistic allows us to

• A)focus only on the right tail of the distribution.
• B)arrive at a more accurate F_(df1,df2) statistic value.
• C)focus only on the left tail of the distribution.
• D)determine if the distribution is symmetric.

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Definitions:

Equity-Financed

A method of raising capital whereby a company issues new shares of stock and receives fresh capital in return but does not incur debt.

Value Per Share

The amount of money that would be received for each share of stock if all of a company’s assets were sold at their exact book value.

Incremental Value

The additional value created by undertaking a particular action, project, or investment, compared to not doing so.

Shares Outstanding

The total number of shares of a company that are currently owned by shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.