The Length of Time It Takes for a Stock Analyst

question 120

Essay

The length of time it takes for a stock analyst to complete an evaluation of a company's earnings forecast is normally distributed with a standard deviation of 1.7 hours.From looking at the time spent by an analyst evaluating 15 randomly-selected stocks you find that the sample mean was 6.4 hours.If you know that the probability of getting a sample mean this large or larger is 0.36,what is the mean of the population?

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Definitions:

ESOs

Stock options provided to employees within their salary package permit them to acquire shares in the company at a fixed price, serving as part of their overall compensation.

Company Stock

Equity shares issued by a company representing ownership interests, giving shareholders voting rights and a claim on the company’s profits in the form of dividends.

ESOs

Employee Stock Options; a form of equity compensation granted by companies to their employees and executives, allowing them to purchase company shares at a set price for a certain period.

Cash Wages

Payments made to employees in the form of physical currency or through direct deposits to their bank accounts as compensation for their labor.