Question: You want to construct a 95% confidence interval for the performance of a large population of mutual funds. Assume returns are independent across funds, and

You want to construct a 95% confidence interval for the performance of a large population of mutual funds. Assume returns are independent across funds, and the standard deviation of fund returns is 6.2 %. If you want the width of your interval to be 2.5 %, what sample size must you collect?

Assume sample is large enough that the sample mean is normally distributed.

Enter answer as the smallest integer sample that will accomplish your objective.

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!

can you help me to solve these questions? Question 1 (1 point) A consumer wanted to find out how accurate Siri (an Apple digital assistant) is, so he asked questions on general facts and recorded how...

ID Salary Compa Midpoint Age 4 5 6 7 8 9 10 11 12 13 14 15 19 20 21 22 26 27 30 31 32 43 44 49 50 1 2 3 16 17 18 23 24 25 28 29 33 34 35 36 37 38 39 40 41 42 45 46 47 48 75.4 72 46 26.9 59.8 65.4...

ID Salary Compa Midpoint Age 17 29 50 16 24 48 12 6 43 44 18 3 28 39 21 9 20 47 25 19 11 42 46 4 22 15 41 33 27 35 1 40 49 31 38 7 13 10 23 30 45 26 5 36 37 14 8 32 34 2 69.6 79.9 67.2 47.1 56.4 66.3...

ID Salary Compa Midpoint Age 1 2 4 5 6 9 12 16 19 21 25 27 29 30 32 33 34 38 40 41 44 46 47 49 50 3 7 8 10 11 13 14 15 17 18 20 22 23 24 26 28 31 35 36 37 39 42 43 45 48 60.3 27.2 61 47.7 76 74.3...

ID Salary Compa Midpoint Age 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 60 26.8 34.7 57.9 48.5 74.3...

A research study looks to examine spending in grocery stores that play music. The hypothesis is that stores that play music increase average sales. A random sample of 100 transactions from stores...

ID Salary Compa Midpoint Age 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 60.3 27.2 35 61 47.7 76 41...

Create the following schedules, financial statements, and calculations A) Pro forma cost of goods manufactured B) Pro forma Cost of goods sold- both financial and variable cost basis C) Pro forma...

How could you y=tell whether moving electrons in a certain region of space are being deflected by an electric field or by a magnetic field (or by both)?

Which of the following is no reason for the use of swaps in international trade? Group of answer choices It reduces the risk of fluctuations in export volumes. It streamlines international trade. It...

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

Approaches to Managing Organizations

Do members demonstrate respect for one anotherfor example, by keeping disagreements focused on the issues or positions at hand rather than on personal character?

Communicating Organizational Culture