What Is NOT True About the Above Range

question 6

Multiple Choice

What is NOT true about the above range?

• A) The 68% of the data lie within this range
• B) About two-thirds of the cases lie within 2.5 points of the mean
• C) Based on the mean and standard deviation the data shows a skewed distribution
• D) The 68% of the cases lie in the middle area bounded by one standard deviation on each side
• E) About two-thirds of the cases lie between scores of 3.5 and 8.5

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Definitions:

Margin of Safety

The difference between actual or expected sales and the break-even point, representing the cushion against potential losses.

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production supplies.

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Contribution Margin Ratio

The proportion of sales revenue that remains after variable production costs are deducted, indicating the profitability of specific products.