Empirical rule

Empirical rule,

Definition of Empirical rule:

  1. In particular, the empirical rule predicts that 68% of observations falls within the first standard deviation (µ ± σ), 95% within the first two standard deviations (µ ± 2σ), and 99.7% within the first three standard deviations (µ ± 3σ).

  2. Used in statistics, the rule states that for a normal distribution almost all of the values will be within 3 standard deviations of the mean. Also called 68-95-99.7 rule or three sigma rule.

  3. The empirical rule, also referred to as the three-sigma rule or 68-95-99.7 rule, is a statistical rule which states that for a normal distribution, almost all observed data will fall within three standard deviations (denoted by σ) of the mean or average (denoted by µ).

How to use Empirical rule in a sentence?

  1. Three-sigma limits that follow the Empirical Rule are used to set the upper and lower control limits in statistical quality control charts and in risk analysis such as VaR.
  2. The Empirical Rule states that 99.7% of data observed following a normal distribution lies within 3 standard deviations of the mean.
  3. Under this rule, 68% of the data falls within one standard deviation, 95% percent within two standard deviations, and 99.7% within three standard deviations from the mean.

Meaning of Empirical rule & Empirical rule Definition