Suppose a Simple Random Sample Size of N Is Drawn

question 19

Multiple Choice

Suppose a simple random sample size of n is drawn from an appropriately normal population.What degrees of freedom should be used to perform a one sample t procedure?

• A)n-1
• B)n+1
• C)n-2
• D)n+2

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Definitions:

Interest-Bearing Note

A debt instrument that obliges the issuer to pay interest to the holder on the principal amount until maturity.

Forward Contracts

Financial derivatives that obligate the buyer to purchase, and the seller to sell, a particular asset at a predetermined future date and price.

Fair Value Hedge

A hedge of the exposure to changes in fair value of an asset or liability, or an unidentified firm commitment, that is attributable to a particular risk.

Cash Flow Hedge

A type of hedge that protects against the variability in cash flows arising from a particular risk, such as interest rate movements or currency fluctuations.