Asked by Vishal Sharma on May 18, 2024
Verified
The normal distribution is completely described by its ________.
A) mean and standard deviation
B) mean
C) mode and standard deviation
D) median and variance
Normal Distribution
A bell-shaped frequency distribution curve that is symmetrical about the mean, showing how data points, like stock returns, are dispersed or spread out.
Standard Deviation
Standard deviation is a statistical measure of the dispersion or variance in a dataset, commonly used to assess volatility in finance.
Mean
A statistical measure that represents the average value of a set of numbers.
- Understand the effects of volatility and standard deviation on the returns from investments.
Verified Answer
SP
Samra ProductionsMay 23, 2024
Final Answer :
A
Explanation :
The mean and standard deviation completely describe the normal distribution, as they determine its shape, location, and spread. The mode and median are not as informative in describing the normal distribution, and the variance is simply the square of the standard deviation.
Learning Objectives
- Understand the effects of volatility and standard deviation on the returns from investments.