Chebyshev’s inequality is one of the most powerful theorems in probability theory. Regardless of the shape of a distribution, a given portion of the observations will fall within a certain distance from the mean. It is applied by calculating the proportion of observations falling within ‘k’ standard deviations from the mean.

Some other related topics you might be interested to explore are Confidence Intervals, Mean, and Standard Deviation.

This is an open-access Excel template in XLSX format that will be useful for anyone who wants to work as a Statistician, Data analyst, Data Scientist, or Asset Manager.

You can now download the Excel template for free.

Chebyshev Inequality is among the topics included in the Quantitative Methods module of the CFA Level 1 Curriculum.