Question

Consider a population of 1024 mutual funds that primarily invest in large companies. You have determined that mu​, the mean​ one-year total percentage return achieved by all the​ funds, is 6.30 and that sigma​, the standard​ deviation, is 2.50. Complete​ (a) through​ (c). a. According to the empirical​ rule, what percentage of these funds is expected to be within ​±3 standard deviations of the​ mean?

Answer 1

Solution :

Given that,

Using Empirical rule,

P( - 1< X < + 1) = 68%

P( - 2< X < + 2) = 95%

(c) P( - 3< X < + 3) = 99.7%

Answer = 99.7%