According to the empirical rule, what proportion of bond mutual funds are expected to have returns within of the mean if the returns are approximately normally distributed?
Table of contents
- 1. Intro to Stats and Collecting Data1h 14m
- 2. Describing Data with Tables and Graphs1h 55m
- 3. Describing Data Numerically2h 5m
- 4. Probability2h 16m
- 5. Binomial Distribution & Discrete Random Variables3h 6m
- 6. Normal Distribution and Continuous Random Variables2h 11m
- 7. Sampling Distributions & Confidence Intervals: Mean3h 23m
- Sampling Distribution of the Sample Mean and Central Limit Theorem19m
- Distribution of Sample Mean - Excel23m
- Introduction to Confidence Intervals15m
- Confidence Intervals for Population Mean1h 18m
- Determining the Minimum Sample Size Required12m
- Finding Probabilities and T Critical Values - Excel28m
- Confidence Intervals for Population Means - Excel25m
- 8. Sampling Distributions & Confidence Intervals: Proportion1h 25m
- 9. Hypothesis Testing for One Sample3h 29m
- 10. Hypothesis Testing for Two Samples4h 50m
- Two Proportions1h 13m
- Two Proportions Hypothesis Test - Excel28m
- Two Means - Unknown, Unequal Variance1h 3m
- Two Means - Unknown Variances Hypothesis Test - Excel12m
- Two Means - Unknown, Equal Variance15m
- Two Means - Unknown, Equal Variances Hypothesis Test - Excel9m
- Two Means - Known Variance12m
- Two Means - Sigma Known Hypothesis Test - Excel21m
- Two Means - Matched Pairs (Dependent Samples)42m
- Matched Pairs Hypothesis Test - Excel12m
- 11. Correlation1h 24m
- 12. Regression1h 50m
- 13. Chi-Square Tests & Goodness of Fit2h 21m
- 14. ANOVA1h 57m
3. Describing Data Numerically
Standard Deviation
Struggling with Statistics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
In the context of statistics, how can the (standard deviation) be used to specify uncertainty in a set of measurements?
A
The (standard deviation) indicates the maximum possible error in any single measurement.
B
The (standard deviation) is only used to calculate the (mean) and does not relate to uncertainty.
C
The (standard deviation) measures the difference between the largest and smallest values in the data set.
D
The (standard deviation) quantifies the typical amount by which individual measurements deviate from the (mean), providing a measure of the uncertainty or spread in the data.
Verified step by step guidance1
Understand that the standard deviation is a measure of spread or dispersion in a data set, indicating how much individual measurements typically differ from the mean.
Recall the formula for the standard deviation of a sample: \(\displaystyle s = \sqrt{\frac{1}{n-1} \sum_{i=1}^n (x_i - \bar{x})^2}\), where \(x_i\) are the individual measurements, \(\bar{x}\) is the sample mean, and \(n\) is the number of measurements.
Recognize that the standard deviation does not represent the maximum error or the range (difference between largest and smallest values), but rather the average deviation from the mean.
Interpret the standard deviation as a quantification of uncertainty by showing how spread out the measurements are around the mean, which helps in understanding the reliability and precision of the data.
Use the standard deviation to express uncertainty by stating that most measurements lie within about one standard deviation of the mean, providing a typical error margin rather than an absolute maximum error.
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