12 Confidence interval 12 Award 400 points The Chartered Fin

12. Award: 4.00 points The Chartered Financial Analyst (CFA) designation is fast becoming a requirement for serious investment professionals. Although it requires a successful compietion of three levels of grueling exams, it also entails promising eers charterholder. He takes a random sample $136,000 with a standard deviation of $35,000. Use this sample i of finance is aurious about the average salary of a CFA of 25 recent charterholders and computes a mean salary of information to determine the 98% (Round careers with lucrative salaries. A student of finance is curious about the average salary of a confidence interval of the average salary of a CFA chartertholkder. Use Table 2 your intermediate calculations to 4 decimal places,\" to a whole number.) t value to 3 declmal places, and final answers Confidence interval to 08 023 013 02 :6.2013,03,25,2013.00.28825,03,30, 2013.00.28735. 08 02 2013_Qc 32363 Worksheet Difficulty 1 Easy Learning Objective: 08-06 Calculate a confidence interval for the population mean when the population standard deviation is not known 13. Award: 4.00 points Consider the folowing hypotheses Approximate the p-value for this test based on the following sample information. Use o Table 2 O0.100

Solution

12. Confidence Interval
CI = x ± Z a/2 * (sd/ Sqrt(n))
Where,
x = Mean
sd = Standard Deviation
a = 1 - (Confidence Level/100)
Za/2 = Z-table value
CI = Confidence Interval
Mean(x)=136000
Standard deviation( sd )=35000
Sample Size(n)=25
Confidence Interval = [ 136000 ± Z a/2 ( 35000/ Sqrt ( 25) ) ]
= [ 136000 - 2.58 * (7000) , 136000 + 2.58 * (7000) ]
= [ 117940,154060 ]