Data Has Been Collected and a Normal Probability Plot for One

question 126

Multiple Choice

Data has been collected and a normal probability plot for one of the variables is shown below. Based on your knowledge of normal probability plots, do you believe the variable in question is
Normally distributed? The data are represented by theʺoʺ symbols in the plot.

• A) Yes. The plot reveals a straight line and this indicates the variable is normally distributed.
• B) Yes. The plot reveals a curve and this indicates the variable is normally distributed.
• C) No. The plot does not reveal a straight line and this indicates the variable is not normally distributed.

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Definitions:

Stockholders' Equity

Represents the ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities. Also known as shareholder's equity or owner's equity.

Redemption Value

Redemption value is the amount payable to a security holder upon its maturity or the amount to redeem a bond before its maturity.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock that must be paid out before any dividends can be issued on common stock.

Dividends in Arrears

Dividends on preferred stock that have not been paid in the scheduled time but are still owed to shareholders.