Let X Be Normally Distributed with Mean μ and Standard

question 63

Multiple Choice

Let X be normally distributed with mean μ and standard deviation σ > 0. Which of the following is true about the z value corresponding to a given x value?

• A) A positive z = (x - μ)/σ indicates how many standard deviations x is above μ.
• B) A negative z = (x - μ)/σ indicates how many standard deviations x is below μ.
• C) The z value corresponding to x = μ is zero.
• D) All of the above.

---

Definitions:

Variable Costing

An accounting method that only includes variable production costs (direct labor, direct materials, and variable manufacturing overhead) in product costs, excluding fixed overhead.

Product Cost

Product cost refers to the total expenses incurred to create a product, including direct labor, materials, and allocated overhead.

Variable Costing

An accounting method that only includes variable costs (costs that change with production levels) in product costs.

Fixed Costs

Expenses that do not change regardless of the level of production or sales, such as rent, salaries, and insurance.