An analyst wants to estimate the return on the S&P 500 Index for the current year using the following data and assumptions:
Sample size = 50 securities from the index
·Mean return for those stocks in the sample for the previous year = 0.114
·Variance = 0.0529
·The reliability factor for a 95% confidence interval with unknown population variance and sample size greater than 30 is
B is correct. The reliability factor for a 95% confidence interval with unknown population variance and sample size greater than 30 is Z0.025=1.96.
The confidence interval estimate is
With sample variance of 0.0529,The estimated interval is|