How many values are within 3 standard deviations of the mean according to the Empirical Rule?

Study for the National Alliance Risk Management Exam. Dive into flashcards and multiple-choice questions, each complete with hints and explanations. Prepare thoroughly for your exam!

The Empirical Rule, also known as the 68-95-99.7 rule, is a statistical guideline that applies to normal distributions. It states that a significant percentage of data values lie within a certain range of standard deviations from the mean. Specifically, the rule indicates that approximately 68% of values fall within one standard deviation of the mean, around 95% of values are within two standard deviations, and about 99.7% of values fall within three standard deviations.

In the context of the question, when we refer to how many values are within three standard deviations of the mean, we are directly referencing the 99.7% figure provided by the Empirical Rule. This means that in a perfectly normal distribution, nearly all data points (99.7%) are found within this range, capturing most of the variation in the dataset.

Thus, the correct answer reflects the statistical principle established by the Empirical Rule, highlighting the importance of understanding how data behaves in relation to the average and its dispersion as measured by standard deviation.

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