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Basic Question 12 of 20
What percent of the observations of a normal distribution will lie above the mean plus two standard deviations?
B. 5%
C. 95%
A. 2.5%
B. 5%
C. 95%
User Contributed Comments 11
| User | Comment |
|---|---|
| Pooh | This reminds me to read question carefully. |
| ENDER | Me too:)) |
| Rotigga | Good question. |
| melodyliu | trick question. So the answer 2.5% looks like unreasonable, but that's the right anwer |
| coolnan | very tricky |
| TammTamm | Me too because I just knew it was 95%. Wow, the mistakes will really hurt if you don't read the question correctly the first time. |
| duongth307 | Hic hic, me three :)) |
| udhay | But as per Chebyshev's inequality formula the proportion of observation with in 2 standard deviation of mean is 75, then how come this answer is correct |
| loisliu88 | the chebyshev's inequality states that AT LEAST 75% of the observations lie within 2 standard deviation, but it doesn't give a max value. And for a normal distribution like this one, 95% of the observations lie within 2 standard deviations. |
| yesandy11 | That's why this site is so good. It trains you to look for questions like this. |
| msk500 | If 95% of the observations lie within 2 SD away from the mean, then 5% of the observations lie away from 2 SD. As this is a normal distribution, 2.5% of the 5% of observations will lie to the right (+), and 2.5% to left (-). |
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Edward Liu
Learning Outcome Statements
calculate, interpret, and evaluate measures of dispersion to address an investment problem
CFA® 2024 Level I Curriculum, Volume 1, Module 3.