As a financial consultant with AIA, Sebastian is assisting his client to determine the average annual return on mutual funds. He selected a random sample of 60 returns, which shows a mean of 12% and assumed the population standard deviation to be 4%.

a. Estimate the 95% confidence interval for the mean annual return on all mutual funds for Sebastian’s client.

b. By using the findings in part

a, determine the 95%

confidence interval for the total mutual funds’

annual return on the entire population in which the total annual investment on mutual funds in AIA is

$9 million.