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)Zero percent
B)Less than .5 percent
C)Between .5 and 1 percent
D)Between 1 and 2 percent
E)More than 2 percent

Question

Quizplus · Accepted Answer

In a normal distribution, approximately 99.7% of the data falls within three standard deviations from the mean. Therefore, the probability of a return more than three standard deviations above the mean is less than 0.5%.

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