In a Normal Distribution with a Mean of 30

question 25

Multiple Choice

In a normal distribution with a mean of 30 , the number 45 has a standardized value of 1.2 . What is the 16^th percentile P₁₆ of this normal distribution?

• A) 16
• B) 17.5
• C) 21.5
• D) 27.6
• E) None of the above.

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Definitions:

Profit

The financial gain realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes associated with the activity.

Covered Interest Arbitrage

A strategy that involves converting currency through the spot exchange market, investing in foreign interest bearing securities, and hedging exchange risk through the forward market to earn riskless profit.

Forward Rate

The predicted interest rate for a loan or investment for a specific period in the future, differing from current rates.

Nominal Risk-Free Rate

The rate of return on an investment with no risk of financial loss, not taking into account inflation.