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An analyst is doing a clinical study on the value of analyte among a large population of healthy people. The analyst is going to use a Gaussian Distribution to share the results. Which of the following represents a Gaussian Distribution?

A.
D
A.
D
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B.
A
B.
A
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C.
C
C.
C
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D.
B
D.
B
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Suggested answer: B

Explanation:

The Gaussian distribution, also known as the normal distribution, is a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean. In graph form, the Gaussian distribution will appear as a bell curve, which is the case with option A. It is characterized by its bell-shaped curve and is defined by the mean () and the standard deviation (). It is a common assumption for the distribution of independent, randomly generated variables.

A data scientist is analyzing a dataset to determine if there is a strong relationship between two variables. A measure of covariance is done. Which of the following graphs indicate Zero Covariance between variables?

A.
2
A.
2
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B.
1
B.
1
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C.
4
C.
4
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D.
3
D.
3
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Suggested answer: C

Explanation:

Covariance measures the directional relationship between the returns on two assets. A positive covariance means that asset returns move together while a negative covariance means they move inversely. Zero covariance indicates that the returns on the two assets move independently of each other. In the context of a scatter plot, zero covariance is represented by a plot where the points do not show any upward or downward trend but are rather scattered randomly on the graph with no discernible pattern.

Graph 4 displays such a pattern where there is no apparent relationship between the variables on the x and y axes, indicating that there is zero covariance between them.


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