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Hi David,
Can you please explain how you arrived at the answer of 75%
Thanks,
Philip
Can you please explain how you arrived at the answer of 75%
Thanks,
Philip
quant round 1 question 18
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Hi Philip,
The answer was truncated from the quiz, which i just fixed, so it reads now:
"We don't need the distribution given a mean and finite variance, this is the cleverness of Chebyshev's inequality. P[ABS(X-mean) <= (constant)(standard deviation) >1 - 1/c^2. In this case, we want the probability variable will fall within two standard deviations: P >=1- 1/2^2 = 1-1/4 = 75%. The probability is at least 75%. Or put another way, probability return is outside the 2 standard deviation interval is LESS THAN OR EQUAL TO 25%."
David
The answer was truncated from the quiz, which i just fixed, so it reads now:
"We don't need the distribution given a mean and finite variance, this is the cleverness of Chebyshev's inequality. P[ABS(X-mean) <= (constant)(standard deviation) >1 - 1/c^2. In this case, we want the probability variable will fall within two standard deviations: P >=1- 1/2^2 = 1-1/4 = 75%. The probability is at least 75%. Or put another way, probability return is outside the 2 standard deviation interval is LESS THAN OR EQUAL TO 25%."
David
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