Converting Scores into Z Scores Standardizes the Original Distribution to Units

question 2

Multiple Choice

Converting scores into Z scores standardizes the original distribution to units of the________.

• A) median.
• B) standard deviation.
• C) mean.
• D) percentage.

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Definitions:

Commitment Fee

A charge imposed by a lender on a borrower for not utilizing a credit line or for funds that have not been disbursed.

Revolving Credit

A flexible credit line that allows individuals or businesses to borrow, repay, and borrow again up to a certain limit, commonly seen in credit cards and lines of credit.

Interest Expense

It refers to the cost incurred by an organization or individual for borrowing funds, typically represented as a yearly interest rate applied to the loan's principal amount.

Prime Rate

The interest rate that banks charge their most credit-worthy customers, often used as a benchmark in lending rates.