Question
In: Statistics and Probability
Situation Z: The following sample of seven randomly selected stock prices were observed for a large corporation. Assume the population is normally distributed
Situation Z: The following sample of seven randomly selected stock prices were observed for a large corporation. Assume the population is normally distributed
31, 35, 19, 20, 23, 27, 25
For situation Z, what is the value of the margin of error for a 95% confidence interval estimate of the average stock price?
A. 2.65
B. 1.96
C.5.36
D.25.7
E. 25
Solutions
Expert Solution
For the given sample
n=7
sample standard deviation=5.794086
alpha=0.05
alpha/2=0.025
df=n-1=7-1=6
t critical value in excel
==T.INV(0.025,6)
=2.446911851
margin of error
=t*s/sqrt(n)
=(2.446911851*5.794086)/sqrt(7)
=5.358636
margin of error=5.36
OPTION C
orchestra answered 2 years agoRelated Solutions
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