The T Distribution Is Similar to the Z Distribution Because

question 7

Multiple Choice

The t distribution is similar to the z distribution because _________________.

• A)As the degrees of freedom go to infinity,the t distribution converges to the z distribution
• B)Both have asymptotic tails-that is,their tails become closer and closer to the horizontal axis,but never touch it
• C)Both A and B are correct
• D)Neither A nor B is correct

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that an individual can purchase, given their income and the prices of the goods.

Expected Rate

A forecasted value, often referring to interest or growth rates, based on current and historical data.

Expected Rate

In finance, it typically refers to the predicted average rate of return on an investment over a specified period.

Standard Deviation

A statistical measure that quantifies the amount of variability or dispersion of a set of data values around the mean (average).