Suppose that you are a member of this arbitration panel. Construct a 95% confidence interval for the true mean return of the inv
estor's portfolio. Record your answers below. Input the lower bound of your confidence interval.
1 answer:
Answer: Margin of Error = 1.944
Lower Bound = 3.052
Explanation:-
Attached below is a file for monthly Rate of return. Used an excel sheet to determine the confidence interval which seems relatively easier as compared to manual computation. The range below (A2:A40) shows the monthly
Functions used : Standard Deviation as= STDEV (A2:A40)
Sample Mean = AVERAGE(A2:A40)
Margin of Error = CONFIDENCE.T(D4,D5,D2)
Lower Bound Interval = D6-D7 = -3.052
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Answer:
Heights of 29.5 and below could be a problem.
Step-by-step explanation:
Normal Probability Distribution
Problems of normal distributions can be solved using the z-score formula.
In a set with mean and standard deviation
, the z-score of a measure X is given by:
The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the p-value, we get the probability that the value of the measure is greater than X.
The heights of 2-year-old children are normally distributed with a mean of 32 inches and a standard deviation of 1.5 inches.
This means that
There may be a problem when a child is in the top or bottom 5% of heights. Determine the heights of 2-year-old children that could be a problem.
Heights at the 5th percentile and below. The 5th percentile is X when Z has a p-value of 0.05, so X when Z = -1.645. Thus
Heights of 29.5 and below could be a problem.