4. The trade volume of a stock is the number of shares traded on a given day. Th

Question

4. The trade volume of a stock is the number of shares traded on a given day. The following data, in millions (so that 2.45 represents 2,450,000 shares traded), represent the volume of a certain stock traded for a random sample of 40 trading days in 2007. Complete parts (a) through (d). 1 Click the icon to view the data table 2 Click the icon to view the table of areas under the t-distribution. (a) Use the data to compute a point estimate for the population mean number of shares traded per day in 2007 million. The point estimate of the population mean number of shares is Round to three decimal places as needed.) (b) Construct a 90% confidence interval for the population mean number of shares traded per day in 2007 million. The lower bound is Round to three decimal places as needed.) million The upper bound is Round to three decimal places as needed.) Interpret the confidence interval. Choose the correct answer below. A. O B. ° C. There is 90% confidence that the mean number of shares of the stock traded per day in 2007 was greater than the upper bound of the confidence interval There is 90% confidence that the mean number of shares of the stock traded per day in 2007 was less than the lower bound of the confidence interval There is 90% confidence that the mean number of shares of the stock traded per day in 2007 was between the lower and upper bounds of the confidence interval (c) A second random sample of 40 days in 2007 resulted in the following data. Construct another 90% confidence interval for the population mean number of shares traded per day in 2007 75 38 97 34 1.48 12 84 46 27 1.6 1.92 1.37 75 1.79 1.69 19 1.71 1.67 .2 1.43 1.38 54 05 1.69 19 05 59 79 The lower bound is million. Round to three decimal places as needed.)

Explanation / Answer

a)

Point estimate of population mean = 2.3373 million

b)

CI interpretation : Option C

c)

Interpretation of CI: Option B

d) Option D

CI for 90% n 40 mean 2.33725 t-value of 90% CI 1.6849 std. dev. 1.197795866 SE = std.dev./sqrt(n) 0.18939 ME = t*SE 0.31910 Lower Limit = Mean - ME 2.01815 Upper Limit = Mean + ME 2.65635 90% CI (2.0182 , 2.6563 )

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.