Read the Z Statistic from the Normal Distribution Table and Choose

question 76

Multiple Choice

Read the z statistic from the normal distribution table and choose the correct answer. For a one-tailed test (lower tail) using α = .0901, z =

• A) -1.86.
• B) -1.34.
• C) -1.96.
• D) -1.645.

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Definitions:

Market Interest Rate

The rate of interest prevailing in the market that lenders demand and borrowers pay for funds.

Contractual Interest Rate

The agreed-upon rate of interest that is to be applied to the principal amount in a financial contract.

Discount

A reduction in the price of goods or services, typically offered to encourage purchases.

Face Value

the nominal value or original cost of a security as stated by the issuing authority, not necessarily its market value.