Where Is a Score of X = 45 Located in a Distribution

question 62

Multiple Choice

Where is a score of X = 45 located in a distribution with a mean of 40 and a standard deviation of 12?

• A) Slightly above average
• B) Far above average
• C) Slightly below average
• D) Far below average

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Definitions:

Nominal Rate of Interest

The nominal interest rate on a loan or investment, before adjusting for inflation.

Real Rate of Interest

The real rate of interest is the rate of interest an investor expects to receive after allowing for inflation, reflecting the true earning potential of an investment.

Financial Risk

The risk of experiencing financial loss from an investment or business endeavor.

Insurable Risk

A risk that meets the criteria of an insurance policy, meaning it is possible to calculate both the probability and the potential cost of the risk.