A certain brokerage house wants to estimate the mean daily return on a certain stock. A random sample of 18 days yields the following return percentages. −2.92 , −1.96 , 1.88 , −1.88 , 1.11 , 2.79 , −2.66 , 1.31 , 1.57 , −2.08 , −0.01 , −2.78 , −1.23 , −1.45 , 1.32 , 1.01 , 2.84 , 1.9 If we assume that the returns are normally distributed, find a 95% confidence interval for the mean daily return on this stock. Then find the lower limit and upper limit of the 95% confidence interval. Carry your intermediate computations to at least three decimal places. Round your answers to one decimal place.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
A certain brokerage house wants to estimate the
days yields the following return percentages.
Carry your intermediate computations to at least three decimal places. Round your answers to one decimal place.
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