Which of the Following Statements About the Standard Deviation IS

question 6

Multiple Choice

Which of the following statements about the standard deviation IS true?

• A) It is closely associated with the median
• B) If the distribution is not too skewed, most values lie within 2 standard deviations of the mean
• C) As all the data points are taken into account it is representative of the data
• D) Half of all data points are within 1 standard deviation of the mean if the distribution is not too skewed

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Definitions:

Deadweight Loss

A loss of economic efficiency that occurs when the optimal level of supply and demand is not achieved.

Supply Elasticities

Measures the responsiveness of the quantity supplied of a good to a change in its price.

Excise Tax

A tax imposed on specific goods, services, or transactions, often used to discourage consumption of certain products or to raise government revenue.

Black Markets

Illegal trade markets that arise when goods or services are traded at prices or in quantities that violate government regulations or laws.