The Empirical Rule States That the Percentage of Observations in a Data

question 96

Multiple Choice

The Empirical Rule states that the percentage of observations in a data set (providing that the data set has a bell-shaped and symmetric distribution) that fall within one standard deviation of their mean is approximately:

• A)68%
• B)75%
• C)95%
• D)99%

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Definitions:

Total Variable Cost

The sum of all costs that vary with output level, including costs for raw materials, labor, and utilities that increase or decrease as production volume changes.

Average Fixed Cost

The fixed expenses of a company divided by the number of units produced, showing cost per unit.

Average Variable Cost

Average variable cost is the total variable costs of production divided by the quantity of output produced; it changes with production volume.

Marginal Cost

The expenditure required to produce one more unit of a product or service.