Post a New Question

Estimating Using Confidence Intervals

posted by .

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.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Maths

    Get Rich Quick Investments LTD offers 2 investment schemes. Scheme 1: Earn 6.5% interest per year, compounded monthly. Scheme 2: Earn 6.45% interest per year, compounded daily. An investor reasons that Scheme 2 should be the best because …
  2. College-Business Investments

    An investor bought 100 shares of Copier Corp. for $65 a share. The firm paid an annual dividend of $2 a share. Commissions were $75 to purchase and $75 to sell. The price of the stock rose to $100 and the investor sold. What is the …
  3. statistic

    1. Past experience indicates that the variance, ¦Ò2x, of the scores, X, obtained on the verbal portion of a test is 5,625. Similarly, the variance ¦Ò2y, of the scores, Y, on the mathematical portion is 2,500. (a) A random sample …
  4. fin

    Which of the following statements is CORRECT?
  5. Probability and Statistics

    For questions 1- 5 use confidence intervals to test the hypothesis. 1) A light bulb producing company states that its lights will last an average of 1200 hours with a standard deviation of 200 hours. A sample of 100 light bulbs from …
  6. finite mathematics

    A financier plans to invest up to $2 million in three projects. She estimates that Project A will yield a return of 10% on her investment, Project B will yield a return of 15% on her investment, and Project C will yield a 20% return …
  7. Business Math

    An investor has $ 500000 to spend. There investments are being considered, each having an expected annual interest rate. The interest rates are 15, 10 & 18 percent respectively. The investor`s goal is an average return of 15 percent …
  8. Business Math

    An investor has $ 500000 to spend. There investments are being considered, each having an expected annual interest rate. The interest rates are 15, 10 & 18 percent respectively. The investor`s goal is an average return of 15 percent …
  9. Business Math

    An investor has $ 500000 to spend. There investments are being considered, each having an expected annual interest rate. The interest rates are 15, 10 & 18 percent respectively. The investor`s goal is an average return of 15 percent …
  10. Business Math

    An investor has $ 500000 to spend. There investments are being considered, each having an expected annual interest rate. The interest rates are 15, 10 & 18 percent respectively. The investor`s goal is an average return of 15 percent …

More Similar Questions

Post a New Question