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October 23, 2014

Homework Help: Estimating Using Confidence Intervals

Posted by Angela on Tuesday, May 17, 2011 at 12:53pm.

An investor wants to determine the true average yield on a selection of investments from the Business week 1000. Suppose the investor draws a random sample of (n=40 firms) and finds an average yield on investment of (xbar = 5.00%) and a sample standard deviation (s = 1.50%). Construct a 95% confidence interval for the true average yield, using (s) as an estimate for the population standard deviation.

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