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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How can you do this? By isolating the variable, or having only it on one side of the equals sign.
Here's the step by step approach. It's just simple algebra and reverse order of operation (which is what you should do whenever you are solving for a variable).
Multiply both sides by 11 to get rid of the 11 denominator.
Then, subtract both sides by 88 to get u by itself.
Therefore, u is equal to 99.
How can you do this? By isolating the variable, or having only it on one side of the equals sign.
Here's the step by step approach. It's just simple algebra and reverse order of operation (which is what you should do whenever you are solving for a variable).
Multiply both sides by 11 to get rid of the 11 denominator.
Then, subtract both sides by 88 to get u by itself.
Therefore, u is equal to 99.