In a Sample of 10,000 Observations from a Normal Population

question 109

Multiple Choice

In a sample of 10,000 observations from a normal population, how many would you expect to lie beyond three standard deviations of the mean?

• A)None of them
• B)About 27
• C)About 100
• D)About 127

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Definitions:

Ownership Percentage

The fraction or percentage of a company that is owned by a shareholder or group of shareholders.

Voting Shares

Shares that give the shareholder the right to vote on corporate matters.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Additional Shares

Extra shares issued by a company, which can result from financing activities, stock splits, or dividend reinvestment plans.