The 95% Probability Range Is Equal to the Mean Plus

question 322

True/False

The 95% probability range is equal to the mean plus or minus three standard deviations.

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Definitions:

Plug Variable

A variable that is used in financial modeling to make the balance sheet balance, often representing the financing needed or surplus cash.

External Financing

Funds that a business obtains from outside sources to finance its operations, growth, or projects, which can include loans, equity investments, and bonds.

Pro Forma Balance Sheet

A financial statement projecting future financial position of a company based on expected future transactions.