Question

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 36 recent charterholders and computes a mean salary of $162,000 with a standard deviation of $36,000.

Use this sample information to determine the upper bound of the 90% confidence interval for the average salary of a CFA® charterholder. (Round the "t" value to 3 decimal places.)

Answer #1

solution:

Given that,

= 162000

s =36000

n = 36

Degrees of freedom = df = n - 1 =36 - 1 = 35

At 90% confidence level the t is ,

= 1 - 90% = 1 - 0.90 = 0.1

/ 2 = 0.1 / 2 = 0.05

t /2,df = t0.05,35 = 1.812 ( using student t table)

Margin of error = E = t/2,df * (s /n)

= 1.812* ( 36000/ 36) = 10872

The 90% upper bound confidence interval is,

+ E

162000+10872

172872

upper bound of the 90% confidence interval for the average salary of a CFA® charterholder is 172872

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 50 recent
charterholders and computes a mean salary of $169,000 with a
standard deviation of $29,000. Use this sample information to
determine the 95% confidence...

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 36 recent
charterholders and computes a mean salary of $178,000 with a
standard deviation of $44,000. Use this sample information to
determine the 99% confidence...

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 16
recent charterholders and computes a mean salary of $200,000 with a
standard deviation of $40,000. Use this sample information to
determine the 95% confidence...

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 36
recent charterholders and computes a mean salary of $146,000 with a
standard deviation of $23,000. Use this sample information to
determine the 99% confidence...

The Chartered Financial Analyst (CFA) designation is fast
becoming a requirement for serious investment professionals. It is
an attractive alternative to getting an MBA for students wanting a
career in investment. A student of finance is curious to know if a
CFA designation is a more lucrative option than an MBA. He collects
data on 34 recent CFAs with a mean salary of $140,000 and a
standard deviation of $35,000. A sample of 49 MBAs results in a
mean salary...

The Chartered Financial Analyst (CFA®) designation is
fast becoming a requirement for serious investment professionals.
It is an attractive alternative to getting an MBA for students
wanting a career in investment. A student of finance is curious to
know if a CFA designation is a more lucrative option than an MBA.
He collects data on 38 recent CFAs with a mean salary of $138,000
and a standard deviation of $34,000. A sample of 80 MBAs results in
a mean salary...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 14 minutes ago

asked 20 minutes ago

asked 38 minutes ago

asked 38 minutes ago

asked 44 minutes ago

asked 47 minutes ago

asked 47 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago