Benchmark Scenario Sample size:n= 2000 Sample Mean 18397.68 Sample Stdev 994.82
ID: 3299066 • Letter: B
Question
Benchmark Scenario
Sample size:n= 2000
Sample Mean
18397.68
Sample Stdev
994.82
CI for the mean?
Lower Bound (LCL)
18353.19
Upper Bound (UCL)
18442.17
PI for a particular outcome?
Lower Bound (LPI)
16363.54
Upper Bound (UPI)
20431.82
Alternative Scenario
Sample size:n= 2000
Sample Mean
18209.03
Sample Stdev
613.92
CI for the mean?
Lower Bound (LCL)
18181.58
Upper Bound (UCL)
18236.49
PI for a particular outcome?
Lower Bound (LPI)
16953.74
Upper Bound (UPI)
19464.33
Homework 1 (Question 1): Compare the two different investment options, and answer the following questions.
(a) Compare the sample mean and sample std of these two alternatives.
(b) Compare the two CIs for the expected assets next year.
(c) Compare the two PIs for your assets next yeart. (Hints: Base your
comparison on the meaning of a PI)
(d) Which of these investment options do you prefer? Why?
Benchmark Scenario
Sample size:n= 2000
Sample Mean
18397.68
Sample Stdev
994.82
CI for the mean?
Lower Bound (LCL)
18353.19
Upper Bound (UCL)
18442.17
PI for a particular outcome?
Lower Bound (LPI)
16363.54
Upper Bound (UPI)
20431.82
Explanation / Answer
1 - benchmark scenario
2 - alternative scenario
(a) Compare the sample mean and sample std of these two alternatives.
mean and sd of 1 is more that of 2.
(b) Compare the two CIs for the expected assets next year.
each value of CI in 2 is less than that in 1 .
(c) Compare the two PIs for your assets next yeart.
PI for 2 is contained in PI for 1 , it means that every value in PI for 2 is present in PI of 1.
(d) Which of these investment options do you prefer? Why?
I would prefer 1 , because mean of 1 is more , since each value of CI in 2 is less than that in 1 . ,it means outcome of 1 is more generally
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