Which of the Following Correctly Describes the Normal Probability Distribution

question 12

Multiple Choice

Which of the following correctly describes the normal probability distribution?

• A) It is single-peaked above the random variable's mean, median, and mode, all of which are equal to one another.
• B) It is perfectly symmetric about this peaked central value and, thus, said to be bell-shaped.
• C) It features tails extending indefinitely in both directions from the center, approaching (but never touching) the horizontal axis, which implies a positive probability for finding values of the random variable anywhere between minus infinity and plus infinity.
• D) All of these.
• E) None of these.

---

Definitions:

Marketable

Describes assets or securities that can easily be sold or converted into cash without a significant loss in value.

Cash Dividend

A payout from the company's profits, determined by the board of directors, given to certain shareholders as cash.

Trading Securities Portfolio

A collection of marketable securities that a business holds for the purpose of reselling them in the short term to profit from market price changes.

Fair Value

An estimate of the price at which an asset or liability could be traded in an orderly transaction between market participants at the measurement date.