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:

Involuntary Conversion

Involuntary conversion is the process whereby property is destroyed, stolen, condemned, or disposed of under the threat of condemnation, and the owner receives compensation or insurance recovery.

Reinvested

The act of using dividends, interest, or profits from an investment to purchase additional shares or units of that investment.

Installment Method

The installment method is a tax provision allowing taxpayers to spread out income recognition over several years when reporting sales or transfers of property, helping to manage tax liability.

Depreciation Recapture

A tax provision where depreciation taken on an asset is taxed as ordinary income when the asset is sold.