You Recently Took a Statistics Exam in a Large Class

question 6

Multiple Choice

You recently took a statistics exam in a large class. The instructor tells the class that the scores were Normally distributed, with a mean of 72 (out of 100) and a standard deviation of 12. Your score was 96. You would like to know what proportion of students did better than you did. Unfortunately, your calculator batteries are dead and you must now rely on Normal tables. You need to find which of the following?

• A)the area to the right of 96
• B)the area to the left of 96
• C)the area to the right of 2
• D)the area to the left of 2

---

Definitions:

Earnings and Profits

A term used in corporate taxation to refer to the after-tax profits of a corporation, often affecting dividend distributions.

Dividends

Payments made by a corporation to its shareholders, representing a portion of the company's earnings.

Net Capital Gain

The profit from the sale of an investment or property, calculated as the difference between the sale price and the original purchase price after adjusting for various factors such as brokerage fees, taxes, and improvements.

Preferential Tax Rates

Lower tax rates applied to certain types of income, such as long-term capital gains and qualified dividends, compared to ordinary income tax rates.