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

Costing for labour, ways or techniques for labour control policy

ways or techniques for labour control policy

Construct the frequency distribution, 1) Here we are given a raw data and w...

1) Here we are given a raw data and we are supposed to construct the frequency distribution of that data and plot the histogram of it. The dataset contains the values from 1 to

Var representation of sutse model, Dear expert, Assume that we have a multi...

Dear expert, Assume that we have a multivariate unobserved component model (or SUTSE, seemingly unrelated time series equation model) in STATE SPACE form, that is: Y(t) = H A(t) +

Relationship between mediation activity, Is there a relationship between me...

Is there a relationship between mediation activity and cooperation between two nations in conflict? A data set was assembled across 15 time periods. Both variables were measured on

Introduction to finance and accounting, How can I use a balance sheet to do...

How can I use a balance sheet to do assignment with some adjustment? do I have to make transaction of each adjustment, and after that I change the balance sheet afterward?

Accounting problem, a business was started on January 1, 2011 and $1000 of ...

a business was started on January 1, 2011 and $1000 of supplies to use in the business. At the end of the month 25% of the supplies remains unpaid and 20% are still on hand. what a

Standard deviation, the first four moments of a distribution about the mean...

the first four moments of a distribution about the mean are 0,16,-64 and 162.what is the standard deviation ?

The number of degrees of freedom, Use the given information to find the num...

Use the given information to find the number of degrees of? freedom, the critical values chi Subscript Upper L Superscript 2?2L and chi Subscript Upper R Superscript 2?2R?, and the

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