Chris Wants to Calculate a Z-Score for His Own Height

question 14

Multiple Choice

Chris wants to calculate a z-score for his own height.The average height in the class is 66 inches,and Chris's height is 62 inches.Chris calculated his z-score to be +1.5.What's wrong with his calculation?

• A)The z-score is an inappropriate calculation here.
• B)The z-score should be a higher number.
• C)He didn't have the standard deviation.
• D)The z-score should be a negative number.

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Definitions:

Funded Status

The financial status of a pension plan, usually indicating the extent to which assets cover liabilities.

Past Service Cost

The cost of additional retirement benefits awarded for an employee's service in prior periods, typically arising from plan amendments.

Service Cost

The portion of the projected pension benefit that is attributed to employee's service in the current year, often used in accounting for pension expenses.

Defined Benefit Pension Plan

A retirement plan where employee benefits are calculated based on a formula considering factors like salary history and duration of employment, with the employer bearing the investment risk.