The Empirical Rule States the Following: Given a Distribution of Measurements

question 198

True/False

The Empirical Rule states the following: Given a distribution of measurements that is approximately bell-shaped (mound-shaped), then the interval contains approximately 68% of the measurements; the interval contains approximately 95% of the measurements; and the interval contains all or almost all of the measurements.

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Definitions:

Actual Output

The real quantity of goods or services produced by a business during a specific period.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing more accurate budgeting and variance analysis.

Relevant Range

The range of activity within which assumptions about variable and fixed cost behavior are valid.

Variable Cost

Costs that vary directly with the level of production output or volume, such as raw materials and direct labor.