Dear David,
I have the following question concerning the Chebyshev’s inequality:
Chebyshev’s inequality states that t e probability that X differs from its mean by at least k standard deviations is less than or equal to 1/k^2
It follows that the probability that X differs from its mean by less than k standard deviations is at least 1-1/k^2.
That is,
P( | X−μ |<kσ )≥1-1/k^2. DIV>
But in your Quant. notes it is stated that
P( | X−μ |<kσ )≥1/k^2. DIV>
Which formula is correct ?
Sincerely,
Alex.
Chebyshev’s inequality |
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