To Compute a Z-Score, Which of the Following Formulas Would $\frac{(\text{y} - \text{mean}) }{\text{sd}}$

question 12

Multiple Choice

To compute a Z-score, which of the following formulas would one use:

• A) \( \frac{(\text{y} - \text{mean}) }{\text{sd}} \)
• B) \( \frac{(\text{x} - \text{mean}) }{\text{N}} \)
• C) \( \frac{(\text{x} - \text{mean}) }{\text{sd}} \)
• D) \( \frac{(\text{x} - \text{mean}) }{\text{y}} \)

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Definitions:

Payback Calculation

A financial analysis method used to determine the time required to recoup the cost of an investment, based on the cash inflows from the investment.

Time Value

Time value refers to the concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Money

A medium of exchange used to facilitate transactions for goods and services.

Net Present Value

A method used to evaluate an investment's profitability by calculating the present values of all cash inflows and outflows.