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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so, when the boat was going up, it wasn't really going "b" fast, it was going " b - c " fast, because the current was eroding speed from it
now, when coming down, the return trip, well the length is the same, so the distance is also 100miles, it only took 2hrs though, because, the boat wasn't coming down "b" fast, it was coming down " b + c " fast, because the current was adding speed to it, so it came down quicker
now, recall your d = rt, distance = rate * time
solve for "c", to see what's the current's speed
what's "b"? well 20+c = b
so, when the boat was going up, it wasn't really going "b" fast, it was going " b - c " fast, because the current was eroding speed from it
now, when coming down, the return trip, well the length is the same, so the distance is also 100miles, it only took 2hrs though, because, the boat wasn't coming down "b" fast, it was coming down " b + c " fast, because the current was adding speed to it, so it came down quicker
now, recall your d = rt, distance = rate * time
solve for "c", to see what's the current's speed
what's "b"? well 20+c = b