The Distribution of Certain Test Scores Is a Nonstandard Normal

question 4

Multiple Choice

The distribution of certain test scores is a nonstandard normal distribution with a mean of 50 and a standard deviation of 6. What are the values of the mean and standard deviation after all test scores have been standardized by converting them to z-scores using zx=−() μ /σ?

• A) The mean is 100 and the standard deviation is 10.
• B) The mean is 0 and the standard deviation is 1.
• C) The mean is 10 and the standard deviation is 100.
• D) The mean is 1 and the standard deviation is 0.

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Definitions:

Retention Ratio

The proportion of net income that is retained by a company rather than distributed to its shareholders as dividends.

Payout Ratio

The proportion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of the company's total earnings.

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Internal Growth Rate

The maximum growth rate a firm can achieve without resorting to external financing.