If Z Is a Standard Normal Random Variable, the Area

question 145

Multiple Choice

If z is a standard normal random variable, the area between z = 0.0 and z = 1.25 compared to the area between z = 1.25 and z = 2.5 will be:

• A) larger
• B) smaller
• C) the same
• D) zero
• E) There is not enough information to answer this question.

---

Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on the current price at which an asset could be sold or a liability settled in a fair transaction between willing parties.

Double Declining-Balance

An accelerated depreciation method that doubles the normal depreciation rate, reducing the book value of assets more quickly in the initial years.

Normal Balance

The expected debit or credit balance of an account, indicating its typical financial activity and position in the accounting equation; a different phrasing from the first definition.

Permanent/Temporary

Permanent/temporary classification refers to the duration for which assets, liabilities, or policies are intended to last, with permanent being indefinite and temporary for a limited period.