To Obtain the Area Below a Positive Z Score or Above

question 33

Multiple Choice

To obtain the area below a positive Z score or above a negative Z score you would________.

• A) subtract the value of the Z score from the mean.
• B) subtract the area in the "Area Beyond Z" column of the Z score table from 50%.
• C) add the value of the Z score to the area beyond the mean.
• D) add the area between the Z score and the mean to 50%.

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Definitions:

Capital Cost Allowance (CCA)

A tax deduction available in Canada for depreciable property that can be used to reduce taxable income.

Straight-line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Projected Cash Flows

Estimated cash movements over a future period, based on expected income and expenses.

NPV

Net Present Value; the difference between the present value of cash inflows and the present value of cash outflows over a period of time.