What Does the "Tail" of a Normal Distribution Refer To

question 170

Multiple Choice

What does the "tail" of a normal distribution refer to?

• A) the area of the normal curve between 2 and 3 standard deviations above the mean
• B) the area of the normal curve between 2 and 3 standard deviations below the mean
• C) the extremes of the distribution
• D) the bottom of the distribution

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Definitions:

Du Pont Identity Method

A technique for analyzing a company's financial performance by examining its efficiency, leverage, and profit margins.

Profit Margin

Profit Margin represents the percentage of revenue that remains after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses its equity investments to generate profit.