In a Sample of 10,000 Observations from a Normal Population

question 109

Multiple Choice

In a sample of 10,000 observations from a normal population, how many would you expect to lie beyond three standard deviations of the mean?

• A)None of them
• B)About 27
• C)About 100
• D)About 127

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Definitions:

Equal Distribution

The equitable allocation of resources, income, or assets among all members of a society or group.

Income

The total money received by an individual or household over a specified time period, including wages, salaries, benefits, and other earnings.

Positive Economic Statement

An objective statement based on facts that can be tested or validated, focusing on descriptions of what is rather than what ought to be.

Payroll Tax

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.