Use the Empirical Rule to Solve the Problem

question 68

Multiple Choice

Use the empirical rule to solve the problem.
-The systolic blood pressure of 18-year-old women is normally distributed with a mean of 120 mmHg and a standard deviation of 12 mmHg. What percentage of 18-year-old women have a systolic blood pressure between 96 mmHg and 144 mmHg?

• A)95%
• B)99.7%
• C)68%
• D)99.99%

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Definitions:

Financial Asset

Assets that derive value from a contractual claim, such as stocks, bonds, bank deposits, and other investments.

Future Cash Flows

Future cash flows refer to the estimated amount of money that is expected to be received or paid out by a company in future periods.

Sinking Fund

Facilitates the orderly retirement of a bond issue. This can be achieved in one of two ways: the company can call in for redemption (at par value) a certain percentage of bonds each year or the company may buy the required amount of bonds on the open market.

Equilibrium

The condition under which the intrinsic value of a security is equal to its price; also, its expected return is equal to its required return.