Which statement is true about a z-score of 0.5?

Prepare for the PHFO Quantitative Analysis For Business Exam. Study with flashcards, multiple choice questions, hints, and explanations to ensure confidence and success in your exam!

Multiple Choice

Which statement is true about a z-score of 0.5?

Explanation:
A z-score shows how far and in which direction a value lies from the mean, measured in units of standard deviation. A z-score of 0.5 means the observation is 0.5 standard deviations above the mean. This comes directly from the definition z = (X − μ) / σ, so X = μ + 0.5σ. It indicates the value is to the right of the mean, but not far above it—only halfway to one standard deviation above the mean. It is not below the mean, not two standard deviations above, and not exactly at the mean.

A z-score shows how far and in which direction a value lies from the mean, measured in units of standard deviation. A z-score of 0.5 means the observation is 0.5 standard deviations above the mean. This comes directly from the definition z = (X − μ) / σ, so X = μ + 0.5σ. It indicates the value is to the right of the mean, but not far above it—only halfway to one standard deviation above the mean. It is not below the mean, not two standard deviations above, and not exactly at the mean.

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