If X Has a Normal Distribution with Mean 60 and Standard

question 176

Multiple Choice

If X has a normal distribution with mean 60 and standard deviation 6,which value of X corresponds with the value z = 1.96?

• A)x = 71.76
• B)x = 67.96
• C)x = 61.96
• D)x = 48.24

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Definitions:

Optimum

The most favorable condition or level for growth, reproduction, or success.

Holding Cash

The act of retaining liquid currency or cash equivalents by individuals or firms as a part of their financial strategy, to cover expenses or for speculative purposes.

Interest Rate

The percentage charged or paid for the use of money on a loan or investment, typically expressed as an annual percentage rate (APR).

Miller-Orr Model

A financial management model used to determine the optimal level of cash balance a company should maintain, considering the costs of cash management and the variability of cash flows.