A Wall Street Journal poll asked 35 economic forecasters to predict the interest rate on 3-month Treasury
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A Wall Street Journal poll asked 35 economic forecasters to predict the interest rate on 3-month Treasury bills 12 months later [9]. These 35 forecasts had a mean of 6.19 and a variance of 0.47. Assuming these to be a random sample, give a 95 percent confidence interval for the mean prediction of all economic forecasters and explain why each of these interpretations is or is not correct:
a. There is a 0.95 probability that the actual Treasury bill rate is in this interval.
b. Approximately 95 percent of the predictions of all economic forecasters are in this interval.
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Related Book For
Essential Statistics Regression And Econometrics
ISBN: 9780123822215
1st Edition
Authors: Gary Smith
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