When Would Using an Independent Samples T-Test Be Inappropriate

question 4

Multiple Choice

When would using an independent samples t-test be inappropriate?

• A) when the experimenter has more than two levels of the dependent variable
• B) when the experimenter has more than two levels of the independent variable
• C) when the experimenter is able to prove covariation
• D) when the experimenter is uses a control condition

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Definitions:

Inflation

A measure of the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Risk Premium

The extra return or compensation investors demand for taking a higher risk compared to a risk-free investment.

Systematic Risk

The risk associated with the overall market or a specific segment of it that cannot be reduced through diversification.

Dividend

A portion of a company's earnings distributed to its shareholders, typically paid on a regular basis.