You have committed yourself to gaining financial independence by age 60. To do this you calculate that you need to save at least R8 000 per month. You are assessing various unit trust investment vehicles for this amount and you obtain data comparing returns for these investments over a period of the past 5 years. Which of the following would be the most appropriate analytical measures? A. Mean and Standard deviation B. Range and coefficient of variation C. Median and interquartile range D. Mean and interquartile range
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
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