The Empirical Rule States That: (I) About 68% of the Observation

question 107

Multiple Choice

The Empirical Rule states that: (i) about 68% of the observation will lie within one standard deviation of the mean.
ii. about 95% of the observations will lie within two standard deviations of the mean.
iii. and virtually all (99.7%) will lie within three standard deviations of the mean.

• A) (i), (ii) and (iii) are all correct statements.
• B) (i) and, (ii) are correct statements but not (iii).
• C) (i) and, (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements, but not (i).
• E) (i), (ii) and (iii) are all false statements.

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Definitions:

Aggregate Demand

The collective call for goods and services in an economy, marked at a certain price level for a given time interval.

Multiplier

The ratio of change in an economic output to a change in an input, such as the increase in public spending leading to a larger increase in the national income.

Consumption Spending

Expenditures by households on goods and services, excluding purchases of new housing.

Income

The money received, especially on a regular basis, for work or through investments.