A random sample of 100 daily stock returns was taken. The average return in the sample...
A random sample of 100 daily stock returns was taken. The average return in the sample appeared to be 4.81%. The population standard deviation is not known, but the sample standard deviation is known to be 0.9%.
a. Calculate a 95% confidence interval for the average stock return
b. If the sample contained 150 stock returns, would the confidence interval found in problem 3 a) become wider? . Yes 2. No 3. The question cannot be answered with the data provided c.How big the sample size be for the margin of error of 0.1% at the confidence level 95%?
d. A fund manager claims that the average stock return is higher than 4.81%. Test the fund manager’s claim with the 5% level of significance.
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