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Reading 7: Statistical Concepts and Market Returns - LOS g

Q1. Assume a sample of beer prices is negatively skewed. Approximately what percentage of the distribution lies within plus or minus 2.40 standard deviations of the mean?

A)   95.5%.

B)   58.3%.

C)   82.6%.

Q2. In a skewed distribution, what is the minimum proportion of observations between +/- two standard deviations from the mean?

A)     95%.

B)     75%.

C)     84%.

Q2. Regardless of the shape of a distribution, according to Chebyshev’s Inequality, what is the minimum percentage of observations that will lie within +/– two standard deviations of the mean?

A)   68%.

B)   75%.

C)   89%.

Q3. In a skewed distribution, what is the minimum amount of observations that will fall between +/- 1.5 standard deviations from the mean?

A)   44%.

B)   95%.

C)   56%.

Q4. According to Chebyshev’s Inequality, for any distribution, what is the minimum percentage of observations that lie within three standard deviations of the mean?

A)   89%.

B)   94%.

C)   75%.

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