Which of the Following Is True Regarding the Standard Deviation

question 15

Multiple Choice

Which of the following is true regarding the standard deviation?

• A)It indicates the degree of variation in the values in such a way as to be translatable into a normal curve.
• B)One standard deviation above and below the midpoint in a normal distribution includes approximately 68% of the area underneath the curve.
• C)+ or − 1.96 standard deviations above and below the midpoint in a normal distribution includes 95% of the area underneath the curve.
• D)The standard deviation can be approximated by dividing the range of the data by 6.
• E)All of these are correct.

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Definitions:

Annual Fixed Costs

The total fixed costs incurred by a business within a year, inclusive of expenses that do not fluctuate with production or sales volume.

Average Operating Assets

An efficiency metric calculated by averaging the value of a company's operational assets over a period, often used in rate of return calculations.

Direct Material Measures

Quantitative assessments used to determine the amount of direct materials required for production.

Financial Measures

Quantitative metrics used to assess a company's financial health and performance, such as income, cash flow, and profitability ratios.