The Chartered Financial Analyst (CFA®) designation is fast becoming a requiremen
ID: 3149681 • Letter: T
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 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. Use Table 2. (Round intermediate calculations to 4 decimal places, "t" value to 3 decimal places, and final answers to the nearest whole number.)
Confidence interval ______ to _______
Explanation / Answer
sample mean = 158000
sample standard deviation = 36000
sample size = 36
df = 35
critical t-value = 1.690 (from t-table)
sample mean +/- critical t-value * sample standard deviation / sqrt(sample size)
158000 +/- 1.690(36000) / sqrt(36)
158000 +/- 10140
= (147860, 168140)
The researcher can be 90% confident that the true mean salary of a CFA charterholder is between $147,860 and $168,140.