Asked by Lilinoe Kekaula-VanGieson on Jun 20, 2024
Verified
The 95% probability range is equal to the mean plus or minus three standard deviations.
Standard Deviations
A measure used in statistics to quantify the amount of variation or dispersion of a set of values.
- Comprehend the principles of standard deviation and variance as indicators of volatility and risk within investment contexts.
Verified Answer
TM
Talal MahmoodJun 23, 2024
Final Answer :
False
Explanation :
The 95% probability range is typically equal to the mean plus or minus approximately two standard deviations, not three. Three standard deviations from the mean cover about 99.7% of the data for a normal distribution.
Learning Objectives
- Comprehend the principles of standard deviation and variance as indicators of volatility and risk within investment contexts.