With a mean of 5% and a standard deviation of 10%, the probability of earning more than 25% in any one year is no more than 2.5%.

Name: With a mean of 5% and a standard deviation of 10%, the probability of earning more than 25% in any one year is no more than 2.5%.
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Question

Quizplus · Accepted Answer

Using the properties of a normal distribution, a return of more than 25% is more than 2 standard deviations above the mean, which corresponds to a probability of less than 2.5%.

With a Mean of 5% and a Standard Deviation of 10