Which of the Following Individuals Would Be Most Negatively Affected

question 103

Multiple Choice

Which of the following individuals would be most negatively affected by anticipated inflation?

• A)a retired railroad engineer who receives a fixed income payment every month
• B)a union contractor whose pay is adjusted based on changes in the CPI
• C)a full-time employee at a pizza parlor who makes more than the minimum wage
• D)a student who borrows $10,000 at a nominal interest rate of 5% to finance educational expenses

---

Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from their mean.

Normally Distributed

Describes a distribution that is symmetrical, bell-shaped, and characterized by data equally spread around the mean, implying many measurement observations fall close to the average.

Mean

The average value in a set of numbers calculated by dividing the sum of all values by the number of values.

Z-scores

Standardized scores that indicate the number of standard deviations an element is from the mean.