Let the Variance of a Normally Distributed Random Sample Be

question 30

Multiple Choice

Let the variance of a normally distributed random sample be 16.A point that is 8 units away from the mean is 1-a point such that the probability of getting any other point further from the mean is less than 0.025. 2-a point such that the probability of getting any other point further from the mean is less than or equal to .95. 3-a point such that the probability of getting any other point further from the mean is greater than 0.025. 4-two standard deviations away from the mean.

• A)1
• B)2
• C)3
• D)4
• E)1 and 4

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Definitions:

Compounded Annually

Interest calculation on a loan or investment once per year where each year's interest is added to the principal.

Rate of Return

The increase or decrease in the value of an investment over a certain time frame, represented as a percentage of the investment's original price.

Compound Annual Return

The annualized average percentage rate of return that accounts for the compounding of interest over a period of time.

Diversified Equity Mutual Fund

A mutual fund that invests in a wide range of equities from various sectors to reduce investment risk.