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A conservative investor would like to invest some money in a bond fund. The investor is concerned about the safety of her principal (the original money invested). Colonial Funds claims to have a bond fund which has maintained a consistent share price of $11. They claim that this share price has not varied by more than $0.3 on average since its inception. To test this claim, the investor randomly selects 21 days during the last year and determines the share price for the bond fund. The average share price of the sample is $10 with a standard deviation of $0.4. Assuming that the share prices of the bond fund have an approximately normal distribution, construct an 80 % confidence interval for the standard deviation of the share price of the bond fund. Round any intermediate calculations to no less than six decimal places and round the endpoints of the interval to four decimal places.

A conservative investor would like to invest some money in a bond fund. The investor is concerned about the safety of her principal (the original money invested). Colonial Funds claims to have a bond fund which has maintained a consistent share price of $11. They claim that this share price has not varied by more than $0.3 on average since its inception. To test this claim, the investor randomly selects 21 days during the last year and determines the share price for the bond fund. The average share price of the sample is $10 with a standard deviation of $0.4. Assuming that the share prices of the bond fund have an approximately normal distribution, construct an 80 % confidence interval for the standard deviation of the share price of the bond fund. Round any intermediate calculations to no less than six decimal places and round the endpoints of the interval to four decimal places.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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< Prev A conservative investor would like to invest some money in a bond fund. The investor is concerned about the safety of her principal (the original money invested). Colonial Funds claims to have a bond fund which has maintained a consistent share price of $11. They claim that this share price has not varied by more than $0.3 on average since its inception. To test this claim, the investor randomly selects 21 days during the last year and determines the share price for the bond fund. The average share price of the sample is $10 with a standard deviation of $0.4. Assuming that the share prices of the bond fund have an approximately normal distribution, construct an 80 % confidence interval for the standard deviation of the share price of the bond fund. Round any intermediate calculations to no less than six decimal places and round the endpoints of the interval to four decimal places. Answer Lower Endpoint Upper Endpoint Tables Keypad Keyboard Shortcuts N
Transcribed Image Text:< Prev A conservative investor would like to invest some money in a bond fund. The investor is concerned about the safety of her principal (the original money invested). Colonial Funds claims to have a bond fund which has maintained a consistent share price of $11. They claim that this share price has not varied by more than $0.3 on average since its inception. To test this claim, the investor randomly selects 21 days during the last year and determines the share price for the bond fund. The average share price of the sample is $10 with a standard deviation of $0.4. Assuming that the share prices of the bond fund have an approximately normal distribution, construct an 80 % confidence interval for the standard deviation of the share price of the bond fund. Round any intermediate calculations to no less than six decimal places and round the endpoints of the interval to four decimal places. Answer Lower Endpoint Upper Endpoint Tables Keypad Keyboard Shortcuts N
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