Which Statement Is Not True Concerning Sturges' Rule

question 101

Multiple Choice

Which statement is not true concerning Sturges' Rule?

• A)It proposes adding one class (bin) to the histogram for each extra observation.
• B)If you double the sample size, you should add one class.
• C)Its purpose is to tell how many classes (bins) to use in a frequency distribution.
• D)It is only a guideline and may be overruled by other considerations.

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Definitions:

Industry Growth

Industry growth refers to the expansion and increased output of a specific sector of the economy, driven by factors like demand, innovation, and investment.

Normal Profits

The minimum level of profit necessary for a company to remain competitive in the market, also seen as the cost of keeping an entrepreneur in business.

Economic Profits

Profits calculated by subtracting both the explicit and implicit costs from a firm's total revenues; a measure of earnings exceeding the opportunity costs.

Entry Of Firms

The process by which new companies enter into an industry, adding to the competition.