CIMA BA2 · Chapter 9 · Question 11 of 11
For a normal distribution, approximately what proportion of values lie within ONE standard deviation either side of the mean?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 68%
Explanation
For any normal distribution, about 68% of values lie within one standard deviation of the mean, about 95% within two standard deviations and about 99.7% within three. 50% of values lie on each side of the mean.
More Risk and uncertainty in decision making MCQs
- Q2A project could produce a profit of $40,000 (probability 0.3), a profit of $25,000 (probability 0.5) or a loss of $10,000 (probability…
- Q3A risk-neutral manager must choose between two mutually exclusive projects: Project X: profit $60,000 (probability 0.4) or $20,000…
- Q4Which of the following is a limitation of using EXPECTED VALUES to make decisions?
- Q5A manager prefers an investment with a certain return of $50,000 to an alternative offering an equal chance of $0 or $110,000. What is the…
- Q6The weekly demand for a product is normally distributed with a mean of 500 units and a standard deviation of 40 units. What is the…
