In a Study Using 8 Samples, and in Which the Population

question 5

Multiple Choice

In a study using 8 samples, and in which the population variance is unknown, the distribution that should be used to calculate confidence intervals is

• A) a standard normal distribution.
• B) a t distribution with 7 degrees of freedom.
• C) a t distribution with 8 degrees of freedom.
• D) a t distribution with 9 degrees of freedom.

---

Definitions:

Bond

A fixed-income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest and the return of the principal at maturity.

Treasury Bill

Short-term, highly liquid government debt obligation issued at a discount from the face value and returning the face amount at maturity.

Par Value

The nominal value of a security stated by the issuer.

Effective Annual Yield

This refers to the real return on an investment, taking into account the effects of compounding interest over a year.