As a stock analyst, your boss, Jerry, has asked you to compile some information on stock of Southern Infrastructure Corporation
including a 95% confidence interval for the mean daily return that he needs to include in a report to senior management. He says that he is also not sure exactly what a 95% confidence interval means and would like you to add an explanation.You have been following the share price of Southern Infrastructure Corporation and have recorded the daily return (as a percentage) for the last 120 days. The data is presented here:mean=44.2020Historically, the standard deviation in daily return for this stock is 1.0%.Complete the report to your boss. Give your numeric answers to 3 decimal places.Sent: February 26, 2015 11:10 AMTo: Jerry KendallSubject: Southern Infrastructure Corp. stock infoDear Jerry,Here are the results gathered from the collected data:Assuming a population standard deviation in daily return of 1.0%, the 95% confidence interval for the mean daily return is:
1 answer:
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