# Petra Munzi wants to know how value managers performed last year. Munzi estimates that the population cross-sectional

## Question:

A. Munzi wants to build a 95 percent confidence interval for the mean return. How large a random sample does Munzi need if she wants the 95 percent confidence interval to have a total width of 1 percent?

B. Munzi expects a cost of about $10 to collect each observation. If she has a $1,000 budget, will she be able to construct the confidence interval she wants?

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**Related Book For**

## Quantitative Investment Analysis

**ISBN:** 978-1119104223

3rd edition

**Authors:** Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle