11、Using Chebyshev's inequality, what is the proportion of observations from a population of 250 that must lie within three standard deviations of the mean, regardless of the shape of the distribution? A. 67% B. 75% C. 89% D. 99% Correct answer = C
"Statistical Concepts and Market Returns," Richard A. Defusco, Dennis W. McLeavey, Jerald E. Pinto, and David E. Runkel 2008 Modular Level I, Vol. 1, pp. 289-291 Study Session 2-7-g calculate and interpret the proportion of observations falling within a specified number of standard deviations of the mean, using Chebyshev's inequality Chebyshev's inequality holds for any distribution, regardless of shape, and states that the proportion of observations located within k standard deviations of the mean is equal to 1 - 1 / k2. In this case, k = 3 and 1 - 1 / 9 = 0.89 or 89%. |