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

Get ready for the WorldatWork CCP Compensation Analytics and Insights Exam. Study with flashcards, multiple choice questions, hints, and detailed explanations. Prepare effectively for your certification test!

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.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy