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    PracticeACCAACCA MA — Management Accounting Practice Exam 4Question 10
    Medium2 marksMultiple Choice
    Data Analysis and Statistical TechniquesSyllabus BNormal DistributionStatistics

    ACCA · Question 10 · Data Analysis and Statistical Techniques

    A public utility company monitors the daily electricity consumption of a city. The consumption follows a normal distribution with a mean of 500 MW and a standard deviation of 20 MW.

    Approximately what percentage of days will have a consumption between 460 MW and 540 MW?

    Answer options:

    A.

    68%

    B.

    95%

    C.

    99.7%

    D.

    50%

    How to approach this question

    Determine how many standard deviations away from the mean the values 460 and 540 are. Apply the empirical rule (68-95-99.7).

    Full Answer

    B.95%✓ Correct
    The range 460 MW to 540 MW represents the mean +/- 40 MW. Since the standard deviation is 20 MW, this is exactly +/- 2 standard deviations. According to the empirical rule of normal distribution, approximately 95% of data falls within 2 standard deviations of the mean.

    Common mistakes

    Confusing the empirical rule percentages (e.g., selecting 68% which is 1 SD).
    Question 09All questionsQuestion 11

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