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 $136,000 with a standard deviation of $35,000. Use this sample information to determine the 99% confidence interval for the average salary of a CFA® charterholder. Assume that salaries are normally distributed. Use Table 2. (Round intermediate calculations to 4 decimal places. Round "t" value to 3 decimal places and final answers to the nearest whole number.)
Ans:
sample size,n=25
df=25-1=24
critical t value=tinv(0.01,24)=2.797
99% confidence interval for average salary
=136000+/-2.797*(35000/sqrt(25))
=136000+/-19579
=(116421, 155579)
The Chartered Financial Analyst (CFA®) designation is fast becoming a requirement for serious investment professionals. Although...
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 lower bound...
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 $195,000 with a standard deviation of $40,000. Use this sample information to determine the 90% 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 42 recent CFAs with a mean salary of $135,000 and a standard deviation of $43,000. A sample of 55 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 42 recent CFAs with a mean salary of $145,000 and a standard deviation of $44,000. A sample of 54 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 32 recent CFAs with a mean salary of $130,000 and a standard deviation of $53,000. A sample of 47 MBAs results in a mean salary...