Some Statisticians Use a Guideline That Says That Events That

question 21

Multiple Choice

Some statisticians use a guideline that says that events that happen 5% of the time or less often should be considered "unusual." By this standard, is it unusual to have a car speed of 75 mi/hr or greater?

• A)No, this would not be unusual because it is only 2 standard deviations higher than the mean.
• B)No, this would not be unusual because is only 1 standard deviation higher than the mean.
• C)Yes, this would be unusual because it is 3 standard deviations higher than the mean.
• D)Yes, this would be unusual because it is 4 standard deviations higher than the mean.

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Definitions:

Dollar Sales

The total value of goods or services sold, measured in dollars, within a specific period of time.

Target Profit

The desired net income a company aims to achieve within a specific period.

Contribution Margin Ratio

The contribution margin ratio is the percentage of each sales dollar remaining after deducting variable expenses, indicating how much of each dollar contributes to fixed expenses and profit.

Operating Leverage

An indicator of the way in which growth in revenue results in an increase in operating profit, revealing the ratio of fixed to variable expenses within a business.