A Normal Probability Plot Suggests That a Normal Probability Model

question 31

True/False

A normal probability plot suggests that a normal probability model is plausible if there is no obvious pattern in the scatter of points.

---

Definitions:

Correlation Coefficient

A statistical measure that calculates the strength of the relationship between the relative movements of two variables.

Standard Deviation

A measure of the dispersion or variability of a set of data points or investment returns, indicating the degree of risk.

Portfolio

A collection of various investments held by an individual, company, or financial institution.

Risky Bond Portfolio

A collection of bonds with higher default risk, which may offer higher yields in compensation for the increased risk of loss.