Which of the Following Statements Is NOT True Regarding the Z-Score

question 25

Multiple Choice

Which of the following statements is NOT true regarding the z-score?

• A)it can be calculated as the data value minus the mean divided by the variance
• B)it is a standardized value (has no units)
• C)it denotes the number of standard deviations a data value is from the mean
• D)a data value less than the mean will have a z-score less than zero
• E)a data value with a z-score less than -3 or greater than +3 might be considered an outlier

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Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates, usually the local currency or the currency of the country where it primarily generates and expends cash.

Fair Value

The proceeds from selling an asset or the financial burden of a liability transfer in a civilized negotiation with market participants on the valuation date.

Functional Currency

The main currency used by a business or in an economy, often the domestic currency or the currency of the primary economic environment in which the entity operates.

Foreign Currency

Refers to currencies other than the domestic currency of a company, used in international trade and investment.