Probability Ranges for a Normal Distribution
When returns display a normal distribution, actual outcomes will lie within ± 1 standard deviation of the mean 68.26 percent of the time, within ±2 standard deviations 95.46 percent of the time, and within ±3 standard deviations 99.74 percent of the time.
When returns display a normal distribution, actual outcomes will lie within ± 1 standard deviation of the mean 68.26 percent of the time, within ±2 standard deviations 95.46 percent of the time, and within ±3 standard deviations 99.74 percent of the time.
that in Figure 14.2. Probabilities associated with the outcomes in Figure 14.1 are given by the heights of the bars, whereas in Figure 14.2, the probabilities must be found by calculating the area under the curve between points of interest.
Was this article helpful?
Don't Blame Us If You End Up Enjoying Your Retired Life Like None Of Your Other Retired Friends. Already Freaked-Out About Your Retirement? Not Having Any Idea As To How You Should Be Planning For It? Started To Doubt If Your Later Years Would Really Be As Golden As They Promised? Fret Not Right Guidance Is Just Around The Corner.
Post a comment