Quant's

danish.hassan7
Good Student
Posts: 10
Joined: Sat Apr 22, 2017 11:51 am

Quant's

Postby danish.hassan7 » Sun Jun 04, 2017 12:47 pm

What percent of the observations will lie above the mean plus two standard deviations?
Choose one answer.
a. 5% Incorrect
b. 2.5% Correct
c. 95% Incorrect
The correct answer is B
95% of the observations lie between plus and minus two standard deviations from the mean.
Therefore, 2.5% lie over and above two standard deviations on each side of the mean.


I cannot understand the solution given above.
When I see the z table its 97% for 2 S.D.

edupristine
Finance Junkie
Posts: 778
Joined: Wed Apr 09, 2014 6:28 am

Re: Quant's

Postby edupristine » Wed Jul 19, 2017 2:58 pm

97% in Z table corresponds to a value between 1.88 and 1.89. The Correct answer is B being the closest answer. The exact answer is 2.28% which corresponds to 2 sigma.


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