PS6 - ISMT111 Problem Set #6 (1) A psychologist has...

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ISMT111 Problem Set #6 (1) A psychologist has designed a new aptitute test for life insurance companies to use to screen applicants for beginning actuarial positions. To estimate the mean score achieved by all future applicants who will eventually take the test, the psychologist has administered the test to nine randomly selected persons. The sample mean and standard deviation have been calculated to be 83.7 points and 12.9 points respectively. By assuming that the test scores of all future applicants are approximately normally distributed, the psychologist reported that a confidence interval estimate for the mean score to be 71.247 to 96.153. What level of confidence the psychologist has used in constructing this estimate? (2) An investment firm in Los Angeles is interested in determining the mean annual rate of return for all common stocks sold on the New York Stock Exchange. A random sample of 100 such stocks is selected and for this sample the following information is determined: mean rate of return is 10.57%; standard deviation of rate of return is 12.10%. Construct a 95% confidence interval estimate of the mean annual rate of return of all such stocks. (3)
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This note was uploaded on 12/22/2009 for the course ISOM ISOM111 taught by Professor Anthonychan during the Fall '09 term at HKUST.

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PS6 - ISMT111 Problem Set #6 (1) A psychologist has...

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