Excel's NORM

question 43

Multiple Choice

Excel's NORM.DIST function can be used to compute _____.

• A) cumulative probabilities for a standard normal z value
• B) the standard normal z value given a cumulative probability
• C) cumulative probabilities for a normally distributed x value
• D) the normally distributed x value given a cumulative probability

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Definitions:

Progressive Tax

At the individual level, a tax whose average tax rate increases as the taxpayer’s income increases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) rises with GDP.

Average Tax Rate

Total tax paid divided by total taxable income or some other base (such as total income) against which to compare the amount of tax paid. Expressed as a percentage.

Highly Progressive

A tax system in which tax rates increase significantly as income or wealth rises.

Federal Spending

Expenditures by the federal government, which can include spending on defense, social security, health care, and infrastructure, among others.