A Measured Value Is Within Two Standard Deviations of the Mean

question 7

Multiple Choice

A measured value is within two standard deviations of the mean but not within one standard deviation, and it is greater than the mean. The distribution is very close to a normal distribution. What does this signify?

• A)This particular value is not an outlier.
• B)In the data set, almost 2/3 of the values are closer to the mean than this one is.
• C)The data point falls within the majority of the measured values, in terms of its closeness to the mean.
• D)In the data set, at least 4% of the values are further from the mean than this particular value is.
• E)In this data set, between 65% and 95% of the values are smaller in value than this one is.

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced.

Long-Run Equilibrium

A state in a market where supply equals demand, all firms are earning normal profits, and no firm has an incentive to change its output or price.

Profit-Maximizing Level

The profit-maximizing level is the point at which a firm achieves the highest possible profit, determined by analyzing costs and revenue to find the most efficient production volume.

Demand Schedule

A graphical representation that illustrates how much of an item or service consumers are ready and financially able to acquire at assorted price points.