The Empirical Rule States That for a Bell-Shaped Distribution, Approximately

question 81

Multiple Choice

The Empirical Rule states that for a bell-shaped distribution, approximately 95 percent of data should lie within:

• A) one standard deviation from either side of the mean.
• B) two standard deviations from either side of the mean.
• C) three standard deviations from either side of the mean.
• D) four standard deviations from either side of the mean.

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Definitions:

Operating Cash Flow

The cash generated by a company's normal business operations, indicating whether a company can maintain or grow its operations without external financing.

Capital Cost Allowance

A tax deduction in some jurisdictions that allows businesses to depreciate the cost of tangible and intangible assets over time.

Weighted Average Cost of Capital (WACC)

The average rate of return a company is expected to pay to its security holders to finance its assets, weighted by the proportion of equity and debt in the company’s capital structure.

Expected Return

The projected return on an investment, based on historical data or statistical analysis.