How Many Standard Deviations Is Required for a 98% Confidence

question 28

Multiple Choice

How many standard deviations is required for a 98% confidence level?

• A) 2
• B) 2.05
• C) 2.17
• D) 2.33
• E) 2.58

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Definitions:

Variable Costs

Expenses that vary directly with the level of production or sales volume.

Outside Supplier

A third-party entity that provides goods or services to a company, typically not affiliated with the purchasing company.

Opportunity Cost

The expense incurred by not choosing the second-best option during decision-making.

Managerial Decision

Choices or judgments made by managers in the context of strategic planning and resource allocation to achieve business objectives.