If the Mean of a Normal Distribution Is Negative

question 76

Multiple Choice

If the mean of a normal distribution is negative,

• A) the standard deviation must also be negative.
• B) the variance must also be negative.
• C) a mistake has been made in the computations, because the mean of a normal distribution cannot be negative.
• D) none of these alternatives is correct.

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Definitions:

Double-Declining-Balance

An accelerated method of depreciation that doubles the normal depreciation rate to expense the asset more quickly.

Estimated Life

The expected duration over which an asset is likely to be useful or productive in its intended operation, used for depreciation purposes.

Straight-Line Depreciation

A method of allocating an asset's cost evenly across its useful life, resulting in the same depreciation expense each year.

Depreciable Cost

The total cost of a tangible asset that can be depreciated over its useful life, excluding salvage value.