The Chartered Financial Analyst (CFA®) designation is fast becoming a requiremen
ID: 3368820 • 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 16 recent charterholders and computes a mean salary of $145,000 with a standard deviation of $32,000. Use this sample information to determine the 95% 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.) Confidence interval to
Explanation / Answer
The statistical software output for this problem is:
One sample T summary confidence interval:
? : Mean of population
95% confidence interval results:
Hence,
95% confidence interval:
127948 to 162052
Mean Sample Mean Std. Err. DF L. Limit U. Limit ? 145000 8000 15 127948.4 162051.6