A Z­score Communicates a Raw Score's

question 12

Multiple Choice

A z­score communicates a raw score's

• A)absolute magnitude.
• B)distance from the mean in standard deviations.
• C)direction from the standard deviation.
• D)variability.

---

Definitions:

Net Present Value

is a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Credit Sale

A transaction where the buyer is allowed to pay for goods or services at a later date, as opposed to paying at the time of sale.

Monthly Interest Rate

The interest rate applied to a loan or investment, calculated to reflect the monthly compounding period.

Variable Cost

Costs that vary directly with the level of production or sales, such as materials and labor.