Question

The trade volume of a stock is the number of shares traded on a given day. The given data contains the volume(in millions) of PepsiCo stock for a random sample of 40 trading days.(Date is there if needed).

The point estimate is 5.42975 and the 95% confidence interval for the population mean of the trade volume of PepsiCo stock is 5.903205

Interpret the 95% confidence interval.

Volume (in millions)

6.16

4.98

5.55

4.28

7.28

6.39

4.02

4.35

6.69

5.32

5.05

4.95

4.42

3.25

4.92

4.41

4.97

5.07

4.8

6.92

4.16

7.54

8.88

7.56

6.1

4

6.22

4.64

6.96

6.71

2.37

4.84

4.13

6.67

6.23

7.71

7.29

3.94

5.04

2.42

Answer 1

The provided sample mean is and the sample standard deviation is s = 1.48040. The size of the sample is n = 40 and the required confidence level is 95%.

The critical t-value for and df =40-1= 39 degrees of freedom is t_c = 2.023.

The 95% confidence for the population mean μ is computed using the following expression

Interpretation: We are 95% confident that , the average volume(in millions) of PepsiCo stock will fall between (4.956,5.903)