Financial Risk Manager Part 1

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Explanation:

The confidence interval is constructed using the student’s t-distribution and the interval is given by:

\bar{X} - 1.962 \times \left(\frac{s}{\sqrt{N}}\right), \bar{X} + 1.962 \times \left(\frac{s}{\sqrt{N}}\right)

Thus,

\text{CI} = \left(\text{USD } 95,000 - 1.962 \left(\text{USD } \frac{19,300}{\sqrt{1000}}\right), \text{USD } 95,000 + 1.962 \left(\text{USD } \frac{19,300}{\sqrt{1000}}\right)\right)

= (\text{USD } 93,802.55, \text{USD } 96,197.45)

Explanation:

The confidence interval is constructed using the student’s t-distribution and the interval is given by:

\bar{X} - 1.962 \times \left(\frac{s}{\sqrt{N}}\right), \bar{X} + 1.962 \times \left(\frac{s}{\sqrt{N}}\right)

Thus,

\text{CI} = \left(\text{USD } 95,000 - 1.962 \left(\text{USD } \frac{19,300}{\sqrt{1000}}\right), \text{USD } 95,000 + 1.962 \left(\text{USD } \frac{19,300}{\sqrt{1000}}\right)\right)

= (\text{USD } 93,802.55, \text{USD } 96,197.45)

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Last updated: May 21, 2026 at 04:19

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