Use the Table for the Question(s)below

question 103

Multiple Choice

Use the table for the question(s) below.
Consider the following realized annual returns:
-Suppose that you want to use the 10-year historical average return on the Index to forecast the expected future return on the Index.The 95% confidence interval for your estimate of the expect return is closest to:

• A)-9.6% to 27.3%.
• B)6.8% to 10.7%.
• C)-3.5% to 21.1%.
• D)4.9% to 12.7%.

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Definitions:

Normal Distributions

A symmetrical, bell-shaped distribution of data in which most of the data points cluster around a central peak and the probabilities for values further away from the mean taper off equally in both directions.

Mathematical Formulas

A concise way of expressing information symbolically, as in a mathematical or chemical formula.

Frequency Distributions

A way to organize data that shows how often each value occurs.

Normal Distributions

A probability distribution that is symmetric about its mean, showing that near the mean there's a higher likelihood of occurrence, a foundational concept in statistics.