Let X Be Normally Distributed with Mean µ = 25

question 51

Multiple Choice

Let X be normally distributed with mean µ = 25 and standard deviation σ = 5. Find the value x such that P(X ≥ x) = 0.1736.

• A) −0.94
• B) 0.94
• C) 20.30
• D) 29.70

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Definitions:

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments.

Implicit Interest Rate

The rate of interest implied in the lease payments or in other financial arrangements, not explicitly stated.

Residual Value

The estimated value of an asset at the end of its lease term or useful life.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an even manner.