Consider a population of 1024 mutual funds that primarily invest in large compan

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 7.10 and that sigma, the standard deviation, is 1.75. Complete (a) through (c).

According to the empirical rule, what percentage of these funds is expected to be within ±2 standard deviationsdeviations of the mean?

= 95 %

b. According to the Chebyshev rule, what percentage of these funds are expected to be within ±6

standard deviations of the mean?

(Round to two decimal places as needed.)

Explanation / Answer

= 7.10, = 1.75

(a) Area under the normal curve between z = -2 and z = 2 is 95%

Answer:95%

(b) 1 - (1/k)^2 = 1 - (1/6)^2 = 0.9722 (97.22%)

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