
Explanation:
For any sample that comes from a normally distributed population, we know that:
when is known
Thus, a 95% CI for the mean, where
which can be expressed as
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Q.70 A random sample of 50 FRM exam candidates was found to have an average IQ of 130. The standard deviation among candidates is known (approximately 20). Assuming that IQs follow a normal distribution, calculate a 2-sided 95% confidence interval for the mean IQ of FRM candidates.
A
(125, 135).
B
$1.96 \pm 5.5$.
C
(130, 135.5).
D
(124.5, 135.5).