SOLUTION: The Chief Economist of Analytics Financial Investments Services (AFIS) Pty Ltd, Prof. Elvis found the average dividend yield of a random sample of 30 listed companies on the Johann
Algebra.Com
Question 1187131: The Chief Economist of Analytics Financial Investments Services (AFIS) Pty Ltd, Prof. Elvis found the average dividend yield of a random sample of 30 listed companies on the Johannesburg Stock Exchange to be 11.5% with a standard deviation of 3.5%. Assuming that the dividend yields are normally distributed, compute, with 90% confidence interval, the actual dividend yield of all listed companies on the Johannesburg Stock Exchange (JSE) last year. Interpret the findings in relation to the confidence interval you have obtained.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
half-interval for 90% t-distribution is t(0.95, df=20)*s/sqrt(In)
=1.699*3.5/sqrt(30)
=1.086
the interval is (10.41%, 12.59%)
We are 90% confident that the true value of the yield of all the listed companies lies within this interval.
RELATED QUESTIONS
2.1 A survey of 200 Johannesburg and 100 Pretoria residents
2.2 The Chief Economist of (answered by ikleyn)
Analytics Statistical and Econometric Research & Consulting (Pty) Ltd wants to determine... (answered by Theo)
A survey of 200 Johannesburg and 100 Pretoria residents was carried out by Miss Joan... (answered by Boreal)
A survey of 200 Johannesburg and 100 Pretoria residents was carried out by Miss Joan... (answered by Boreal)
The average dividend yield of a random sample of 25 JSE-listed companies this year was... (answered by Theo)
The average dividend yield of a random sample of 25 JSE listed companies this year was... (answered by Boreal)
The average divided yield of a random sample of 25 JSE-listed companies this year was... (answered by Boreal)
The statements of financial position of 3 companies on 31 December 2020 were as follows;
(answered by ikleyn)
The number of older consumers in the United States is growing and they are becoming an... (answered by stanbon)