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
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