QuestionMay 26, 2025

You are doing an analysis of company stock values and find that the stock value associated with Company A has a z-score of -1.3 Which of the following would be the correct interpretation of this z-score? Company A has a stock value 1.30 below the average. Company A has a stock value 1.30 above the average. Company A has a stock value 1.3 standard deviations below the average. Company A has a stock value 1.3 standard deviations above the average.

You are doing an analysis of company stock values and find that the stock value associated with Company A has a z-score of -1.3 Which of the following would be the correct interpretation of this z-score? Company A has a stock value 1.30 below the average. Company A has a stock value 1.30 above the average. Company A has a stock value 1.3 standard deviations below the average. Company A has a stock value 1.3 standard deviations above the average.
You are doing an analysis of company stock values and find that the stock value
associated with Company A has a z-score of -1.3 Which of the following would be
the correct interpretation of this z-score?
Company A has a stock value 1.30 below the average.
Company A has a stock value 1.30 above the average.
Company A has a stock value 1.3 standard deviations below the average.
Company A has a stock value 1.3 standard deviations above the average.

Solution
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Answer

Company A has a stock value 1.3 standard deviations below the average. Explanation 1. Understand z-score interpretation A z-score indicates how many standard deviations an element is from the mean. A negative z-score means the value is below the average. 2. Apply z-score concept The z-score of -1.3 means Company A's stock value is 1.3 standard deviations below the average.

Explanation

1. Understand z-score interpretation<br /> A z-score indicates how many standard deviations an element is from the mean. A negative z-score means the value is below the average.<br /><br />2. Apply z-score concept<br /> The z-score of $-1.3$ means Company A's stock value is 1.3 standard deviations below the average.
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