An investment advisor has worked with 24 clients for the past five years. Following are the percentage

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An investment advisor has worked with 24 clients for the past five years. Following are the percentage rates of average five-year returns that these 24 clients experienced over this time frame on their investments:

11.2 11.2 15.9 2.7 4.6 7.6 15.6 1.3 3.3 4.8 12.8 14.9 10.1 10.9 4.9 2.1 12.5 3.7 7.6 4.9 10.2 0.4 9.6 0.5 This investment advisor plans to introduce a new investment program to a sample of his customers this year. Because this is experimental, he plans to randomly select 5 of the customers to be part of the program. However, he would like those selected to have a mean return rate close to the population mean for the 24 clients. Suppose the following 5 values represent the average five-year annual return for the clients that were selected in the random sample:

11.2 2.1 12.5 1.3 3.3 Calculate the sampling error associated with the mean of this random sample. What would you tell this advisor regarding the sample he has selected?

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Business Statistics A Decision Making Approach

ISBN: 9780136121015

8th Edition

Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry, Kent D. Smith

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