Tables of Normal Distribution Probabilities Are Found in Many Statistics

question 5

Multiple Choice

Tables of normal distribution probabilities are found in many statistics books. These probabilities are calculated from a normal distribution with ___________.

• A) A mean of 1 and a standard deviation of 1
• B) A mean of 100 and a standard deviation of 15
• C) A mean of 0 and a standard deviation of 15
• D) A mean of 0 and a standard deviation of 1

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Definitions:

Equivalent Annual Annuity

A method used in financial analysis to compare the profitability of investments with differing durations by converting values into equal annual payments.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionally weighted.

Discounted Payback

A capital budgeting procedure that calculates the time required to break even from an investment, accounting for the time value of money.

Cash Flow

The net amount of cash being transferred into and out of a business, a key indicator of financial health.