Asked by Tycen Martin on May 14, 2024
Verified
You heard that the average number of years of experience among stockbrokers is 14 years.You can't remember the standard deviation somebody with 8 years' experience has a z-score of -2.Find the standard deviation.
A) 3 years
B) 9 months
C) 6 months
D) 9 years
E) 3 months
Standard Deviation
A measure of the amount of variation or dispersion of a set of values, indicating how much the members of the set diverge from the mean.
Z-Score
A statistical measure that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean.
Stockbrokers
Professionals who buy and sell stocks and other securities for clients in exchange for a fee or commission.
- Familiarize yourself with the notion and calculation techniques of standard deviations from the mean.
Verified Answer
MW
Mardrika WebsterMay 18, 2024
Final Answer :
A
Explanation :
The z-score formula is Z=(X−μ)σZ = \frac{(X - \mu)}{\sigma}Z=σ(X−μ) , where XXX is the value, μ\muμ is the mean, and σ\sigmaσ is the standard deviation. Plugging in the values, −2=(8−14)σ-2 = \frac{(8 - 14)}{\sigma}−2=σ(8−14) , solving for σ\sigmaσ gives σ=3\sigma = 3σ=3 years.
Learning Objectives
- Familiarize yourself with the notion and calculation techniques of standard deviations from the mean.