Measures of Dispersion

LOS g. Calculate and interpret 1) a range and a mean absolute deviation and 2) the variance and standard deviation of a population and of a sample.

LOS h. Calculate and interpret the proportion of observations falling within a specified number of standard deviations of the mean using Chebyshev’s inequality.

LOS i. Calculate and interpret the coeficient of variation and the Sharpe ratio.

Terms covered: Mean absolute deviation, Population variance, Population standard deviation, Sample variance, Sample standard deviation, Chebyshev’s inequality, Sharpe ratio

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