The Graph Below Is of a Normal Curve

question 1

Multiple Choice

The graph below is of a normal curve. The shaded portion of the graph represents 68% of the total area under the curve. According to the graph, what is the value of the 97.5th percentile P97.5 ?

• A) 2
• B) 3
• C) 12
• D) 35
• E) None of the above.

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Definitions:

Accounts Payable

An accounting entry representing an entity's obligation to pay off a short-term debt to its creditors or suppliers.

Notes Payable

A liability on a balance sheet representing promissory notes that a company must pay in the future.

Bad Debts Expense

The operating expense account that estimates the amount of credit sales that will probably not be collectible in a given accounting period when the Allowance method is used. For the direct write-off method, this account would be the actual amount written off.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that may not be collected.