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You are interested in estimating A, the mean monthly rate of return of the stock of Company A listed on the Toronto Stock Exchange. You

You are interested in estimating A, the mean monthly rate of return of the stock of Company A listed on the Toronto Stock Exchange. You randomly pick n=36 months, for each you observe the monthly rate of return of Company A stock. You have observed the following data, in %. 5.49, 3.87, 3.92, 6.35, 6.95, 5.16, 1.61, 2.27, 4.49, 3.8, 2.14, 4.04, 3.47, 4.31, 2.82, 5.15, 6.67, 5.47, 5.55, 3.17, 7.94, 4.29, 5.82, 3.73, 5.62, 3.92, 6.12, 5.12, 10, 1.94, 6.36, 2.39, 7.7, 5.57, 6.12, 3.42 (a) Find a 96% confidence interval for A, by Bootstrapping 1000 samples. Use the seed 3051 to ensure that R-Studio "randomly" samples the same "random" samples as this question will expect. Use at least 4 digits after the decmial if rounding. You can do this by including the code, you can copy it into your R-Studio to bootstrap your samples. RNGkind(sample.kind = "Rejection"); set.seed(3051); B=do(1000) * mean(resample(c(5.49, 3.87, 3.92, 6.35, 6.95, 5.16, 1.61, 2.27, 4.49, 3.8, 2.14, 4.04, 3.47, 4.31, 2.82, 5.15, 6.67, 5.47, 5.55, 3.17, 7.94, 4.29, 5.82, 3.73, 5.62, 3.92, 6.12, 5.12, 10, 1.94, 6.36, 2.39, 7.7, 5.57, 6.12, 3.42), 36)); lower bound =

upper bound =

(b) From the from 96% confidence interval found in (a) , can you conclude that the mean monthly rate of return of Company A stock is 7%, or A=7%? ? No Yes because the ? upper bound lower bound of the 96% confidence interval is ? less than not less than greater than 7%. (c) From the from 96% confidence interval found in (a) , can you conclude that the mean monthly rate of return of Company A stock greater than 5.2%, or A>5.2%? ? No Yes because the ? upper bound lower bound of the 96% confidence interval is ? less than not less than greater than 5.2%.

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