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hrome File Edit View History Bookmarks People Window Help S my.bsu-? ?Announc x S Smartemx Take Tes??Continue x C i Secure https://blackboard.bsu.edu/webapps assessment takelaun. ?? 20 It is (62.05, 64.35) QUESTION 34 4 points Save Answer Question 34. The Chartered Financial Analyst (CFA) designation is fast becoming a requirement for serious investment professionals. Although it requires a successful completion of three levels of grueling exams, it also entails promising careers with lucrative salaries. A student of finance is curious about the average salary of a CFA charterholder. He takes a random sample of 25 recent charterholders and computes a mean salary of $158,000 with a standard deviation of $36,000. Use this sample information to determine the 95% confidence interval for the average salary of a CFA charterholder. i, What is the margin of error? ii. What is the 95% confidence interval? HTHL C5S Path: p Words:0A Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Close Window Save and Submit

Explanation / Answer

ANSWER:

1) MOE = Z Score * std / (n) ^ 1/2

std = 36,000

n = 25

n ^ 1/2 = 25 ^ 1/2 = 5

z score at 95% confidence level is 1.96

moe = 1.96 * 36000 / 5

moe = 1.96 * 7200

moe = 14,112

so the margin of error is $14,112.

2) confidence interval = (mean + moe) , ( mean - moe)

mean = $158,000

moe = $14,112

confidence interval = ($158,000 + $14,112) , ($158,000 - $14,112)

confidence interval = ($172,112) , ($143,888)

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