Determine and Interpret Z-Scores
-A Television Station Claims That the Amount

question 107

Multiple Choice

Determine and Interpret z-Scores
-A television station claims that the amount of advertising per hour of broadcast time has an average of 17 minutes and a standard deviation equal to 2.2 minutes. You watch the station for 1 hour, at a randomly selected time, and carefully observe that the amount of advertising time is equal to 7 minutes. Calculate the z-score for this amount of advertising time.

• A) \(z = - 4.55\)
• B) \(z = 4.55\)
• C) \(z = - 0.28\)
• D) \( z = 0.28\)

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Definitions:

Interest Rate

The cost of borrowing money, expressed as a percentage of the total amount loaned, or the rate of return on investments.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Risk Averse

The preference for certainty and the avoidance of risk in investments or economic decisions, often leading to choices that offer lower returns in exchange for reduced risk.

Comparable Good Outcomes

Situations where two or more goods or scenarios produce similarly beneficial effects or results.