What is the minimum sample size required by the analyst

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Reference no: EM131460900

Question: An analyst would like to construct 95% confidence intervals of the mean returns of two mutual funds. Fund A is a high risk fund with a known population standard deviation of 20.6%, whereas the Fund B is a lower-risk fund with a known population standard deviation of 12.8%.

a. What is the minimum sample size required by the analyst if she wants to restrict the margin of error to 4% for Fund A?

b. What is the minimum sample size required by the analyst if she wants to restrict the margin of error to 4% for Fund B?

c. Why do the above results differ if they use the same margin of error?

Reference no: EM131460900

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