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Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the empirical rule?
π‘ Hint: Think about how data values spread around the mean.
Question 2
Easy
Give an example of how normal distribution is applied in finance.
π‘ Hint: Consider how investors evaluate market performance.
Practice 4 more questions and get performance evaluation
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What percentage of data lies within two standard deviations from the mean according to the empirical rule?
π‘ Hint: Recall the three key percentages defined by the empirical rule.
Question 2
True or False: The normal distribution is used in quality control to determine acceptable product specifications.
π‘ Hint: Think about how companies maintain quality standards.
Solve 1 more question and get performance evaluation
Push your limits with challenges.
Question 1
A manufacturing company produces bolts with a mean diameter of 10mm and a standard deviation of 0.2mm. If the production output is normally distributed, what percentage of bolts will be within the range of 9.6mm to 10.4mm?
π‘ Hint: Remember to convert the measurements to Z using the mean and standard deviation.
Question 2
Discuss the limitations of assuming that stock returns follow a normal distribution in finance.
π‘ Hint: Consider real market behaviors and their characteristics.
Challenge and get performance evaluation