Given a normal distribution,assume you want to earn a rate of return that plots more than three standard deviations above the mean.What is your probability of earning such a return in any one year?
A).14 percent or less
B)0.15 to .25 percent
C).26 to .50 percent
D).51 to 1 percent
E)More than 1 percent

Question

Quizplus · Accepted Answer

According to the empirical rule, the probability of a value being more than three standard deviations above the mean is approximately 0.3%. This corresponds to option A, which states that the probability is 14 percent or less. All other options overestimate the probability.

Given a Normal Distribution,assume You Want to Earn a Rate