The Calculation of the Standard Deviation for the Beta Distribution

question 53

Multiple Choice

The calculation of the standard deviation for the beta distribution is based on the assumption that __________.

• A)the range is divided by a count of the values used to compute the mean
• B)the range is approximately equal to six times the standard deviation
• C)the standard deviation is 50 percent of the mean
• D)the standard deviation is the square of the statistical variance

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Definitions:

CESA

Coverdell Education Savings Account; a tax-advantaged investment account in the U.S. designed to encourage savings for future education expenses.

AGI

Short for Adjusted Gross Income, which is an individual's total gross income minus specific deductions, used in the U.S. tax system to determine taxable income.

Exclusion Ratio

The portion of an annuity payment that is not subject to income tax, representing a return of investment in the annuity.

Annuity Payment

Regular payments received from an annuity investment over a specified period.