If Research Suggests That the Mean Number of Insurance Quotations

question 12

Multiple Choice

If research suggests that the mean number of insurance quotations a person makes in a year is 26 with a standard deviation of 4, what is the z-score for a score of 18?

• A) -2
• B) 11
• C) 2
• D) -1.41

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Definitions:

Straight-Line Method

A method of calculating depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.

Salvage Value

The estimated residual value of an asset at the end of its useful life, reflecting the amount it could be sold for or its disposal value.

Useful Life

The expected duration of time over which an asset is anticipated to be economically usable by one or more users.

Incremental Fixed Overhead

The fixed costs that will change as a direct result of a decision made by a company.