5 divided by 8 is 0.625 which is 62.5% So, 62.5% of the data is within one standard deviation. You are finding the ACTUAL percentage of mutual funds that are within one standard deviation. The empirical rule states that if these are normally distributed, 68% would fall within one standard deviation.
What is the relationship between standard deviation and sample variance?
True, because the standard deviation describes how far, on average, each observation is from the typical value. A larger standard deviation means that observations are more distant from the typical value, and therefore, more dispersed. Find the sample variance and standard deviation. 22, 13, 6, 10, 12
How does standard deviation affect dispersion?
True or False: When comparing two populations, the larger the standard deviation, the more dispersion the distribution has, provided that the variable of interest from the two populations has the same unit of measure. True, because the standard deviation describes how far, on average, each observation is from the typical value.
What is the mean pulse rate of sample 1?
(b) The mean pulse of sample 1 is approximately 67.3 per minute. The mean pulse of sample 2, is approximately 69.3 per minute. (c) The mean pulse rate of sample 1 underestimates the population mean. The mean pulse rate of sample 2 underestimates the population mean.
What proportion are within one standard deviation of the mean?
Approximately 68%Approximately 68% of the data fall within one standard deviation of the mean. Approximately 95% of the data fall within two standard deviations of the mean. Approximately 99.7% of the data fall within three standard deviations of the mean.
What is +1 standard deviation from the mean?
Standard Deviations The Standard Deviation is a measure of how spread out numbers are (read that page for details on how to calculate it). When we calculate the standard deviation we find that generally: 68% of values are within. 1 standard deviation of the mean.
What is standard deviation in mutual funds?
Standard deviation is a statistical tool that measures the deviation or dispersion of the data from the mean or average. When seen in mutual funds, it tells you how much the return from your mutual fund portfolio is straying from the expected return, based on the fund's historical performance.
How do you find the percentage of data in one standard deviation of the mean?
Percent Deviation From a Known Standard To find this type of percent deviation, subtract the known value from the mean, divide the result by the known value and multiply by 100.
What percent is below 1 standard deviation?
68%The Empirical Rule states that 99.7% of data observed following a normal distribution lies within 3 standard deviations of the mean. Under this rule, 68% of the data falls within one standard deviation, 95% percent within two standard deviations, and 99.7% within three standard deviations from the mean.
What is a good standard deviation for a stock portfolio?
Based on the above definition, we can expect its annual performance will fall within the -5% to +25% range about 2/3 of the time (every two out of three years). And about 95% of the time (19 out of 20 years), returns should lie within the bounds of -20% and +40% (two standard deviations).
What is the standard deviation of a stock?
Standard deviation is the statistical measure of market volatility, measuring how widely prices are dispersed from the average price. If prices trade in a narrow trading range, the standard deviation will return a low value that indicates low volatility.
What is a good standard deviation for a stock?
When stocks are following a normal distribution pattern, their individual values will place either one standard deviation below or above the mean at least 68% of the time. A stock's value will fall within two standard deviations, above or below, at least 95% of the time.