GENERAL KNOWLEDGE

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GK

BUSINESS ECONOMICS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
If the z-score of an observation in a set of normally distributed numerical data is bigger than zero, it means that the observation is ____ hint:z score= (x-x̄)/s
A
an error
B
an outlier
C
bigger than the mean
D
bigger than the standard deviation
Explanation: 

Detailed explanation-1: -The normal distribution is a symmetrical, bell-shaped distribution in which the mean, median and mode are all equal. It is a central component of inferential statistics. The standard normal distribution is a normal distribution represented in z scores. It always has a mean of zero and a standard deviation of one.

Detailed explanation-2: -The higher the Z-score, the further from the norm the data can be considered to be. In investing, when the Z-score is higher it indicates that the expected returns will be volatile, or are likely to be different from what is expected.

Detailed explanation-3: -The mean of the z-scores is always 0. The standard deviation of the z-scores is always 1. The graph of the z-score distribution always has the same shape as the original distribution of sample values.

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