
Explanation:
The 95% confidence interval for the mean is calculated using the sample mean, standard error, and the critical t-value. The formula is:
Given: Sample Mean () = USD 95,000 Standard Deviation () = USD 19,300 Number of simulations () = 1000
The standard error of the mean is:
For a 95% confidence level with degrees of freedom, the critical t-value () is approximately 1.962.
Margin of Error = $1.962 \times 610.316 \approx 1,197.45$
Confidence interval limits:
Lower Bound = $95,000 - 1,197.45 = 93,802.5595`,000 + 1,197.45 = 96,197.45$
The resulting 95% confidence interval is (USD 93,802.55, USD 96,197.45).
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Q.79 A CNBC analyst is estimating the future value of cryptocurrency wallets, where the mean ending value in USD is USD 95,000, the standard deviation is USD 19,300, and the number of simulations is 1000. Which of the following is closest to the 95% confidence interval he would find with this simulation?
A
(USD 93,802.55, USD 96,197.45)
B
(91,213.34, USD 98,786.66)
C
(USD 94,962.13, USD 95,037.87)
D
(USD 94,727.43, USD 95,272.57)
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