The Empirical Rule and Chebyshev's Rule Both Relate the Percent $\pm 2$

question 38

Essay

The empirical rule and Chebyshev's rule both relate the percent of data points to the number of standard deviations above or below the mean. What is the significant difference between the two and why do the percents for $\pm 2$ SD and $\pm 3$ SD differ so much?

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with voting rights and potential for dividends.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with fixed dividends.

Common Stock

A type of equity security that represents ownership in a corporation, with rights to vote on corporate matters and receive dividends.

Consolidated Income Statement

A financial statement that summarizes the revenue, expenses, and profits of a parent company and its subsidiaries.