The Sampling Distribution of the Ratio of Two Sample Variances

question 174

Multiple Choice

The sampling distribution of the ratio of two sample variances is said to be F-distributed provided that:

• A) the samples are independent from any distributions.
• B) the populations are normal with equal variances.
• C) the samples are matched and their sizes are large.
• D) the samples are independently drawn from two normal populations.

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Definitions:

Marketable Securities

Financial instruments that can be easily converted into cash at a reasonable price in the short term.

Money Market

A segment of the financial market in which financial instruments with high liquidity and short maturities are traded.

Interest Rate Risk

The potential for investment losses due to changes in interest rates.

Marketable Securities Portfolio

This refers to a collection of liquid financial instruments that a company or individual holds, which can be quickly sold in the market to raise cash.