Answer-first summary for fast verification
Answer: [$193,247, $206,753]
We need to find the 2.5th percentile and the 97.5th percentile for the z-distribution with 100 observations. The formula to apply is: \[\bar{X} - 1.96 * (\frac{s}{\sqrt{N}}), \bar{X} + 1.96 * (\frac{s}{\sqrt{N}})\] Where \( N = 100 \) \[= \$200,000 - 1.96(\frac{\$34,456}{\sqrt{100}}), \$200,000 + 1.96(\frac{\$34,456}{\sqrt{100}})\] \[= [\$193,246.624, \$206,753.376]\] This matches option A [$193,247, $206,753] after rounding.
Author: Tanishq Prabhu
Ultimate access to all questions.
Construct a 95% confidence interval for the ending mutual fund capital amount where the number of simulations is 100, the mean ending capital is $200,000, and the standard deviation is $34,456.
A
[$193,247, $206,753]
B
[$193,177.7, $200,000]
C
[$193, $206]
D
[$180,000, $220,000]
No comments yet.