Question: Assume that monthly returns are normally distributed with a mean of 1 percent and a sample standard deviation of 4 percent. The population standard deviation

Assume that monthly returns are normally distributed with a mean of 1 percent and a sample standard deviation of 4 percent. The population standard deviation is unknown. Construct a 95 percent confidence interval for the sample mean of monthly returns if the sample size is 24.

1 + and minus 1.96 x 4/square root 24

(-0.60,2.60)

this is what I did can someone tell me if i'm correct

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

A small town wants to build some new recreational facilities. The proposed facilities include a swimming pool, recreation center, basketball court and baseball field. The town council wants to...

Assume that monthly returns are normally distributed with a mean of 1 percent and a sample standard deviation of 4 percent. The population standard deviation is unknown. Construct a 95 percent...

2. Assume that monthly returns are normally distributed with a mean of 1 percent and a sample standard deviation of 4 percent. The population standard deviation is unknown. Construct a 95 percent...

Assume that monthly returns are normally distributed with a mean of 1 percent and a sample standard deviation of 4 percent. The population standard deviation is unknown. Construct a 95 percent...

6 Assume that monthly returns are normally distributed with a mean of 1 percent and a sample standard deviation of 4 percent. The population standard deviation is unknown. Construct a 95 percent...

1. 2. Assume that monthly returns are normally distributed with a mean of 1 percent and a sample standard deviation of 4 percent. The population standard deviation is unknown. Construct a 95 percent...

6. Assume that monthly returns are normally distributed with a mean of 1 percent and a sample standard deviation of 4 percent. The population standard deviation is unknown. Construct a 95 percent...

Moving to another question will save this response Question 4 Assume that annual returns are normally distributed with a mean of 3 percent and a sample standard deviation of 4 percent. The population...

Question 11 1 pts Assume the monthly returns are normally distributed with a mean of 0.012 and a sample variance of 0.0016. The population variance is unknown. What is the 95% confidence interval for...

please help below Assessments in this course are not compatible with mobile devices and should not be taken through a mobile phone or a tablet. If you need further assistance please contact FIU...

What are [Mg2+] and [OH] in a saturated solution of Mg(OH)2? The Ksp of Mg(OH)2 is 5.6 1012.

Collar A can slide freely on the semicircular rod shown. Knowing that the constant of the spring is k and that the unstretched length of the spring is equal to the radius r, determine the value of...

explain Alternative Payment Models (APMs) within MACRA and how it relates to value-based payments and bundled payments

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...