Question 1162937: 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 $140,000 with a standard deviation of $30,000. Use this sample information to determine the 99% confidence interval for the average salary of a CFA charterholder. Assume that salaries are normally distributed. (You may find it useful to reference the t table. Round intermediate calculations to at least 4 decimal places. Round "t" value to 3 decimal places and final answers to the nearest whole number.)
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! the half-interval for a t99%CI is t(0.995, df=24)*s/sqrt(n)
this is 2.797*30000/sqrt(25)=$16782
this is added to and subtracted from the mean
($123218, $156782)
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