At the end of 1990, 1991, and 1992, the average prices of a share of stock in a portfolio were $34.83, $34.65, and $31.26 respectively. To investigate the average share price at the end of 1993, a random sample of 30 stocks was drawn and their closing prices on the last trading day of 1993 were observed with a mean of 33.583 and a standard deviation of 19.149. Estimate the average price of a share of stock in the portfolio at the end of 1993 with a 90 percent confidence interval.
A) [27.643, 39.523]
B) [26.732, 40.434]
C) [32.514, 34.651]
D) [32.533, 34.633]
E) [32.269, 34.897]

Question

Quizplus · Accepted Answer

[± ] = [33.583 ± 1.699 (19.149/ 5.477)]
= [33.583 ± 5.940] = [27.643, 39.523]

At the End of 1990, 1991, and 1992, the Average