If a Particular Set of Data Is Approximately Normally Distributed

question 8

Multiple Choice

If a particular set of data is approximately normally distributed, we would find that
Approximately

• A) 2 of every 3 observations would fall between 1 standard deviation around the mean.
• B) 4 of every 5 observations would fall between 1.28 standard deviations around the mean.
• C) 19 of every 20 observations would fall between 2 standard deviations around the mean.
• D) All the above.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of rules and standards used for financial reporting and accounting.

Principles-based

An approach that bases decisions on general principles or values rather than specific rules.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that are becoming the global standard for the preparation of public company financial statements.

GAAP

Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.