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Solve the Problem σ\sigma Or σ2\sigma ^ { 2 } , a Table Is Used to Find the Critical Values

question 62

Multiple Choice

Solve the problem.
-In constructing a confidence interval for σ\sigma or σ2\sigma ^ { 2 } , a table is used to find the critical values χL2\chi _ { L } ^ { 2 } and χR2\chi _ { R } ^ { 2 } for values
of n101n \leq 101 . For larger values of n,χL2n , \chi _ { L } ^ { 2 } and χ2R\chi \frac { 2 } { R } can be approximated by using the following formula:
χ2=12[±zα/2+2k1]2\chi ^ { 2 } = \frac { 1 } { 2 } \left[ \pm z _ { \alpha / 2 } + \sqrt { 2 \mathrm { k } - 1 } \right] ^ { 2 }
where k\mathrm { k } is the number of degrees of freedom and zα/2\mathrm { z } _ { \alpha / 2 } is the critical z\mathrm { z } score. Estimate the critical values χL2\chi _ { \mathrm { L } } ^ { 2 } and χR2\chi _ { \mathrm { R } } ^ { 2 } for a situation in which you wish to construct a 95%95 \% confidence interval for σ\sigma and in which the sample size is n=298\mathrm { n } = 298 .


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Foreign Bonds

Bonds issued in a domestic market by a foreign entity, denominated in the currency of the domestic market.

Single Country

Pertains to investments or activities that are focused exclusively within one country's borders.

Triangle Arbitrage

Triangle arbitrage involves exploiting an arbitrage opportunity resulting from a pricing discrepancy among three different currencies in the foreign exchange market.

Canadian Dollar

The official currency of Canada, represented by the symbol C$ or CAD, and is one of the world's major currencies traded in financial markets.

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