The Z Value Corresponding to a Probability of 95% Is

question 55

Multiple Choice

The Z value corresponding to a probability of 95% is close to ______.

• A)1.65
• B)1.95
• C)2.65
• D)2.95

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Definitions:

Cash Flow

The complete inflow and outflow of cash and equivalent financial assets within a business framework.

Future Value Formula

A mathematical equation used to calculate the future value of an investment based on its current value, the interest rate, and the time period of the investment.

Compounded Monthly

The process where interest earned on an investment is added to the principal each month, with future interest then earned on the new total.

Semi-Annually

Describes an event or action that occurs twice a year, typically every six months.