Assume That a Set of Test Scores in an Introduction

question 14

Multiple Choice

Assume that a set of test scores in an Introduction to Finance class is normally distributed with a mean of 72 and a standard deviation of 8. Use the 68-95-99.7 rule to
Find the percentage of scores between 80 and 96.

• A) 13.5%
• B) 15.85%
• C) 30.7%
• D) 2.5%
• E) 25.5%

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Definitions:

Revenue Variance

The difference between the actual revenue earned and the expected revenue that was budgeted for a specific period.

Actual Revenue

The real income that a company generates from its business activities, reported during a specific period.

Static Planning Budget

A budget designed for a single level of activity and does not change even if the level of activity changes.

Fixed Costs

Expenses that remain constant for a company irrespective of the level of production or sales.