HW#3-Depaul-FIN_202

HW#3-Depaul-FIN_202 - cannot do anything else but be upset...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
A) % CI: 95 1.96 CI Width: 1 SD: 4 (X+1.96)-(X-1.96)=1 Simplified 2(1.96):1: 3.92 1/3.92: 0.26 SD of sample mean sq root of n: 15.68 n: 245.86 B) She can only pay for a sample up to 100 observations. This is less than the 245.86 amount we just calculated. She can stay at her current budget and have a wider confidence interval, more than 1%, or she can raise her budget to reach the 1% confidence level interval width.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
A). % pop. Mean 6 pop. SD 18 RFR -2 95% CI 1.96 square root of n 2 (four year returns) lower limit -11.64 upper limit 23.64 B). X-u -8 SD/sq root n 9 Z -0.89 -0.89 0.19 Four year returns of -2 happen about 18.67% of the time. This is a high percentage but it does happen so the investor
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: cannot do anything else but be upset. A). Forecast (Xi) # of Analysts (Ni) XiNi (Xi-X) (Xi-X)^2 1.40 1 1.40-0.05 0.00250000000000003 1.43 1 1.43-0.02 0.00040000000000000 1.44 3 4.32-0.01 0.00010000000000000 1.44 1.44 1.45 2 2.90 0.00 0.00000000000000000 1.45 1.47 1 1.47 0.02 0.00040000000000000 1.48 1 1.48 0.03 0.00090000000000000 1.50 1 1.50 0.05 0.00250000000000000 mean Forecast (X) 1.45 SD Forecast 0.02789 B). n-1 9 n-1 10 t0.025 2.26 CI 1.45 upper limit 1.47 lower limit 1.43 (Xi-X)^2Ni...
View Full Document

This homework help was uploaded on 04/20/2008 for the course FIN 202 taught by Professor William,white during the Spring '08 term at DePaul.

Page1 / 4

HW#3-Depaul-FIN_202 - cannot do anything else but be upset...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online