What is the probability associated with a return that lies in the upper tail when the mean plus two standard deviations is graphed?

Question

Quizplus · Accepted Answer

When the mean plus two standard deviations is graphed, we are looking at the upper tail of the distribution that starts from the mean and extends two standard deviations to the right. This area represents the probability of observing a return that is 2 standard deviations or more above the mean. Using the empirical rule, we know that approximately 2.5% of observations lie in this area, so the answer is D) 2.5 percent.

What Is the Probability Associated with a Return That Lies