The distribution of bankcard balances for customers is highly right-skewed with a mean of $1,100 and a standard deviation equal to $250. Based on this information, approximately 68 percent of the customers will have bank balances between $850 and $1,350.

Question

Quizplus · Accepted Answer

The rule that approximately 68% of observations fall within one standard deviation of the mean (the empirical rule) applies to normal or nearly normal distributions, not to highly skewed distributions.

The Distribution of Bankcard Balances for Customers Is Highly Right-Skewed