Question

#46 according to the “empirical rule”, what percentage of credit loads would you expect to lie within three (3) standard deviation units of the mean? (a) 50% (b) 68% (c) 75% (d) 95% (e) 99.7% #47 according to the “empirical rule”, what percentage of credit loads would you expect to lie outside one (1) standard deviation unit from the mean? (a) 50% (b) 32% (c) 25% (d) 5% (e) 0.3%

Explanation:

Step1: Recall Empirical Rule

The Empirical Rule for a normal - distribution states that about 68% of the data lies within 1 standard deviation of the mean, about 95% lies within 2 standard deviations of the mean, and about 99.7% lies within 3 standard deviations of the mean.

Step2: Solve #46

Since the percentage of data within 3 standard deviations of the mean according to the Empirical Rule is 99.7%, the answer to #46 is E.

Step3: Solve #47

The percentage of data within 1 standard deviation of the mean is 68%. So the percentage of data outside 1 standard deviation of the mean is 100% - 68%=32%. The answer to #47 is B.

Answer:

#46: E. 99.7%
#47: B. 32%