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:

Bad Debt Expense

The cost associated with accounts receivable that a company does not expect to collect because customers default on their payments.

Allowance for Doubtful Accounts

A contra asset account used to estimate the portion of a company's accounts receivable that may not be collectible.

Retail Company

A business entity that sells goods directly to consumers, typically through various channels such as physical stores or online platforms.

Finished Goods

Products that have completed the manufacturing process and are ready for sale to customers.