Question

Volume (in millions)
2.37
2.42
3.25
3.94
4
4.02
4.13
4.16
4.28
4.35
4.41
4.42
4.64
4.8
4.84
4.92
4.95
4.97
4.98
5.04
5.05
5.07
5.32
5.55
6.1
6.16
6.22
6.23
6.39
6.67
6.69
6.71
6.92
6.96
7.28
7.29
7.54
7.56
7.71
8.88

The trade volume of a stock is the number of shares traded on a given day. The given data file contains the volume(in millions) of PepsiCo stock for a random sample of 40 trading days.

(1) Use the data to find a point estimate for the population mean of the trade volume of PepsiCo stock.

(2) Construct a 95% confidence interval for the population mean of the trade volume of PepsiCo stock.

(3) Interpret the 95% confidence interval you found in (2)

(4) Construct a 90% confidence interval for the population mean of the trade volume of PepsiCo stock.

(5) Interpret the 90% confidence interval you found in (4)

(6) (Bonus) In general, which interval is wider, 90% or 95%? Why?

Answer 1