Question

The following sample of seven randomly selected stock prices were observed for a large corporation. Assume the population is normally distributed.

31,35,19,20,23,27,25

What is the value of the margin of error for 95% confidence interval estimate of the average stock prices?

A)1.96

B)2.65

C)5.36

D)25

E)25.7

Answer 1

Solution

Given that

The sample mean is $\bar x$

Mean $\bar x$ = ($\sum$x / n) )

=31+35+19+20+23+27+25 /7

=180/7

=25.7143

Mean $\bar x$ = 25.7

The average stock prices is 25.7

Option E ) is correct.