When using the 2-sigma rule, if 75% fall within ±2 SD, what percentage lies outside this range?

Study for the WorldatWork CCP Test with flashcards and multiple choice questions. Prepare with hints and explanations to excel on your exam!

Multiple Choice

When using the 2-sigma rule, if 75% fall within ±2 SD, what percentage lies outside this range?

Explanation:
The idea is simple: the percentages inside and outside the interval must add up to 100%. If 75% fall within ±2 SD, then the remaining observations lie outside. 100% minus 75% equals 25%. So, outside this range is 25%. Note: the familiar empirical rule says about 95% lie within ±2 SD for a normal distribution, leaving about 5% outside. This question uses a given 75% inside, which would imply 25% outside, regardless of the usual rule.

The idea is simple: the percentages inside and outside the interval must add up to 100%. If 75% fall within ±2 SD, then the remaining observations lie outside. 100% minus 75% equals 25%. So, outside this range is 25%.

Note: the familiar empirical rule says about 95% lie within ±2 SD for a normal distribution, leaving about 5% outside. This question uses a given 75% inside, which would imply 25% outside, regardless of the usual rule.

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