A Normally Shaped Distribution Has a μ = 36 and a σ

question 3

Multiple Choice

A normally shaped distribution has a μ = 36 and a σ = 12. A sample of 9 individuals is randomly selected and achieved a M = 32. What is the z-score for the obtained sample mean?

• A) -.33
• B) +.33
• C) -1.00
• D) +1.00

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Definitions:

Short 100 Shares

The process of selling 100 shares that are not currently owned, with the expectation of buying them back at a lower price for a profit.

Initial Margin

The minimum amount of funds required to open a position in the futures market, intended to cover potential losses.

Maintenance Margin

The minimum amount of capital that must be maintained in a margin account after a purchase or trade, to cover the risk of loss.

Margin Call

A requirement from a broker for an investor to add more cash or securities to their account to mitigate potential losses.