CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

What is the difference between Chebyshev's Inequality and the Empirical Rule?

A. Chebyshev's Inequality applies only to distributions in which 68% of the data points fall within one standard deviation of the mean; the Empirical Rule applies only to mound or symmetrical distributions.
B. Chebyshev's Inequality applies to any probability distribution; the Empirical Rule applies only to distributions in which 68%/95%/99% of the data points fall within one/two/three standard deviations of the mean.
C. Chebyshev's Inequality applies to any mound-shaped probability distribution; the Empirical Rule applies only to distributions in which 95% of the data points fall within two standard deviation of the mean.
Correct Answer: B

User Contributed Comments 3

User Comment
olagbami Empircal rule applies to normal distribution where 68% of data point fall within 1 std dev, 95% of data ponts fall within 2 std dev, and 99% of data points fall within 3 std dev.
johntan1979 Keyword is ANY probability distribution, regardless of the shape.
khalifa92 Chebyshev's inequality holds for samples and populations and for discrete and continuous data regardless of the shape of the distribution.
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