Confidence interval for the average stock price

Reference no: EM1386579

You are tracking Chipotle Mexican Grill's stock price, attempting to figure out a good price point for entry into the market. You look at 36 random days over the course of a few months and see that the closing price has an average of $273.41 with a standard deviation of $21.528. You construct a 90% confidence interval for the average stock price to be (267.348, 279.472). Of the following choices, what is the approporiate interpretation of this interval?

1) We are 90% confident the average daily closing price for any day is between 267.348 and 279.472

2) We are 90% confident that the proportion of all days that have a closing price between 267.348 and 279.472 is 90%

3) We are certain that 90% of the daily closing prices will be between 267.348 and 279.472.

4) We are 90% confident the average daily closing price for the days monitored is between 267.348 and 279.472.

5) We cannot determine the proper interpretation of this interval.

Reference no: EM1386579

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