The percentage of observations that lie between 0.5 and 1.2 on the density curve is 35%. Therefore, the correct answer is:
A) 35%
To determine the percentage of observations that lie between 0.5 and 1.2 on a density curve, we need to calculate the area under the curve for this interval. The density curve takes the value of 0.5 for the interval
and the value of 0 everywhere else.
The area under the density curve for the entire interval from 0 to 2 is equal to the base times the height since the curve is flat (rectangular shape). The base of this rectangle is the length of the interval from 0 to 2, which is 2 units, and the height is the value of the density, which is 0.5.
The total area under the curve from 0 to 2, which represents 100% of the observations, is:
![\[ \text{Total area} = \text{base} * \text{height} = 2 * 0.5 = 1. \]](https://img.qammunity.org/2024/formulas/mathematics/high-school/6g7jouh6qhw73jtdwdsz204h8yy1zd7945.png)
Now, let's calculate the area under the curve from 0.5 to 1.2:

![\[ \text{Area from 0.5 to 1.2} = (1.2 - 0.5) * 0.5. \]](https://img.qammunity.org/2024/formulas/mathematics/high-school/euua1wfozu6tfwwzkorv5bs4daxkv7ihfm.png)
![\[ \text{Area from 0.5 to 1.2} = 0.7 * 0.5. \]](https://img.qammunity.org/2024/formulas/mathematics/high-school/c1vipw6ba2tl69xcixmz0l4q550vja96z7.png)

The percentage of observations that lie between 0.5 and 1.2 on the density curve is 35%. Therefore, the correct answer is:
A) 35%