Why Are Z-Scores Used to Check for Outliers

question 16

Multiple Choice

Why are z-scores used to check for outliers?

• A) They standardize scores for a known mean and standard deviation, allowing comparison.
• B) They allow you to allocate letters for missing values.
• C) A z-score is an outlier.
• D) They standardize scores in order to convert them to values closer to the mean.

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Definitions:

Partnership

A sanctioned form of business collaboration among two or more persons who equally participate in managing the business and dividing its profits.

Proprietorship

A type of business entity owned and run by one individual where there is no legal distinction between the owner and the business.

Accounting Records

Documentation and books that keep track of the financial transactions, operations, and condition of a business.

Revenues Recognized

Refers to the income that a company has earned and reported on its financial statements for a specific period, in accordance with accounting principles.