You Are Considering the Use of Sampling to Determine the Average

question 87

Essay

You are considering the use of sampling to determine the average age of persons attending a movie at different times during the day.Assume that you have controlled sampling risk to 10 percent and estimate that the average age is 43 years with an associated precision of 10 years.
A. Form a precision interval based on your sampling application. What general conclusions can you draw from this precision interval?
A. Precision interval = 43 years + or - 10 years
Precision interval = 33 years to 53 years
B. Based on the precision interval from (a), how confident do you feel that the average age of the moviegoers is more than 35? Less than 60?
B. Because the lower bound of the precision interval (33 years) is less than 35 years, you could not reliably conclude that the average age of the moviegoers is more than 35 years. Because the upper bound of the precision interval (53 years) is less than 60 years, you could reliably conclude that the average age of the moviegoers is less than 60 years.

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Definitions:

Resigns

refers to the act of formally giving up or quitting one's office or position, often with formal notification.

Expected Return

The anticipated average return of an investment over a specified period.

Portfolio

A mix of financial investments encompassing stocks, bonds, commodities, cash, and cash-like assets, also covering mutual funds and ETFs.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be mitigated through portfolio diversification.