If Z Is a Standard Normal Random Variable, the Area

question 38

Multiple Choice

If Z is a standard normal random variable, the area between z = 0.0 and z = 1.30 is 0.4032, while the area between z = 0.0 and z = 1.50 is 0.4332. What is the area between z = -1.30 and z = 1.50?

• A) 0.0300
• B) 0.0668
• C) 0.0968
• D) 0.8364
• E) 0.1428

---

Definitions:

Dividend Payout

The portion of a company's earnings that is distributed to shareholders, usually in the form of cash dividends.

Capitalized Earnings Model

A valuation method in which earnings are considered in perpetuity, with a capitalization rate determining the present value of those earnings.

P/E Ratio

Price-to-Earnings Ratio, a valuation metric calculated by dividing the market price per share by its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

EPS

Earnings Per Share, a key financial metric indicating the profitability of a company, calculated as the company's profit divided by the outstanding shares of its common stock.