Parametric Tests Are Distribution-Free Tests

question 116

True/False

Parametric tests are distribution-free tests.

---

Definitions:

Dollar Change

The absolute difference in the value of a financial instrument, currency or commodity's price from one period to another.

Dividend-Payout Policies

Strategies a company uses to decide the portion of profits it will distribute to shareholders as dividends versus retaining for reinvestment.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, indicating the degree of variation from the average.