An Analyst Takes a Random Sample of 25 Firms in the Telecommunications

question 61

Multiple Choice

An analyst takes a random sample of 25 firms in the telecommunications industry and constructs a confidence interval for the mean return for the prior year. Holding all else constant, if he increased the sample size to 30 firms, how are the standard error of the mean and the width of the confidence interval affected?

• A) 1.645(3.20/6)
• B) 1.645(10.24/6)
• C) 1.96(3.20/6)
• D) 1.96(10.24/6)

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Definitions:

Lava Flows

The movement of molten rock expelled by a volcano during an eruption.

Volcanic Eruption

A volcanic eruption is a process where magma (molten rock) and gas escape from a magma chamber through the crust to the surface, often accompanied by volcanic ash and lava flows.

Ice Sheet

A mass of ice of considerable thickness and more than 50,000 square kilometers in area, forming a nearly continuous cover of ice and snow over a land surface.

Felsic

A term used in geology to describe igneous rocks that are rich in light-colored minerals such as quartz, feldspar, and muscovite.