A Professor at a Local University Noted That the Exam

question 4

Multiple Choice

A professor at a local university noted that the exam grades of her students were normally distributed with a mean of 73 and a standard deviation of 11. Students who made 59.99 or lower on the exam failed the course. What percent of students failed the course?

• A) 11.85%
• B) 88.15%
• C) 1.80%
• D) 98.20%

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Definitions:

Capital Surplus

A balance sheet account; the portion of shareholders’ contributions exceeding the par or stated value of shares. Also called additional paid in capital.

Derivative Action

A lawsuit brought by shareholders on behalf of a corporation against third parties, typically involving claims of mismanagement or abuse by corporate officers.

Independent Directors

Board members who are not part of a company's day-to-day operations, ensuring unbiased oversight and reducing conflicts of interest.

Zapata Test

A legal standard used to determine the independence and good faith of a special litigation committee's investigation and recommendations in corporate litigation.