Construct confidence interval for the true mean return, Basic Statistics

Assignment Help:

A researcher has gathered data on the daily returns on a portfolio of call options over a recent 250-day period. The mean daily return has been 0.001 and the sample standard deviation of daily portfolio returns is 0.0025. The researcher believes that the mean daily portfolio return is not equal to zero.

a) Construct a hypothesis test of the researchers belief at the 5% level of significance.

b) The researcher now wishes to test his belief that the mean daily return is strictly positive. Construct a hypothesis test of this belief at the 5% level of significance.

c) Construct a 95% confidence interval for the true mean return.


 

 


Related Discussions:- Construct confidence interval for the true mean return

.., what is probabality

what is probabality

Confidence interval for the mean.., How to start solving the null hypothesi...

How to start solving the null hypothesis that the mean daily caloric intake in the adult population of a rural county is 1800 calories. A sample of 400 had a mean of 1785 and SD 24

Average, characteristics of a Good Average

characteristics of a Good Average

Financial limitations and expertise, Expertsmind.com offering Limitations ...

Expertsmind.com offering Limitations and expertise in financial accounting In Financial sales it is also useful in the following respects:- (1) Increased volume of finan

Cost of preference sharea, A company wishes to issue new preference shares;...

A company wishes to issue new preference shares; the company will incur flotation cost of 2% per share. the market value of this shares is $90 per share & a nominal value of $100 p

Simple arithamatic mean, following the hight of studen 155,153,168,160,162...

following the hight of studen 155,153,168,160,162,166,167,180,257,165,

Probability, s. All human blood can be "ABO-typed" as one of O, A, B, or AB...

s. All human blood can be "ABO-typed" as one of O, A, B, or AB, but the distribution of the types varies a bit among groups of people. Here is the distribution of blood types for a

Why are jupiter’s galilean moons geologically active, Why are Jupiter’s Gal...

Why are Jupiter’s Galilean moons geologically active? - Io is the most Volcanically active world in our solar system, Io get the heat from a process that happens on its interior

Explain correlation coefficient, Q. Explain Correlation Coefficient? A...

Q. Explain Correlation Coefficient? Ans. The strength of a linear correlation is determined by how precisely the y variable shifts as the x variable increases. The two pi

calculate the chi-square statistic, The table below shows a breakdown of w...

The table below shows a breakdown of women between the ages of 20 to 64 who have had a Pap smear--it shows the number in each age group cross tabulated with the time of their last

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd