Birth Weights at a Local Hospital Have a Normal Distribution

question 28

Multiple Choice

Birth weights at a local hospital have a Normal distribution, with a mean of 110 oz and a standard deviation of 15 oz. The proportion of infants with birth weights above 125 oz is:

• A)0.500.
• B)0.159.
• C)0.341.
• D)0.841.

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Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life, reflecting what the asset can be sold for or its scrap value.

Capital Lease

A lease agreement in which the lessee records the leased asset as an asset in its balance sheet, and the lease payment obligations as liabilities.

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.