Suppose That Two Sets of Data Conform to a Normal

question 27

Multiple Choice

Suppose that two sets of data conform to a normal probability distribution, and that the standard deviation of Set X is 2, while the standard deviation of Set Y is 3. Then,

• A) Set X contains a larger amount of data than set Y.
• B) The curve for Set Y is more flattened and spread out than the curve for Set X.
• C) The variance for both sets of data will be the same.
• D) The curve for Set X is more flattened and spread out than the curve for Set Y.
• E) Set Y contains a larger amount of data than set X.

---

Definitions:

Depreciation

The systematic allocation of an asset's cost over its useful life.

Useful Life

The estimated period that an asset is expected to be useful for the purpose it was acquired by the company.

Declining-Balance Method

Depreciation method that applies a constant rate to the declining book value of the asset and produces a decreasing annual depreciation expense over the useful life of the asset.

Accelerated Depreciation

A method of depreciation that allows larger depreciation expenses in the early years of an asset's life and smaller expenses in the later years.