To Estimate the Mean Earnings Forecast for a Large Company

question 114

Short Answer

To estimate the mean earnings forecast for a large company, an investor looked up earnings forecasts from six financial analysts. The six forecasts he found were 200, 220, 300, 185, 210, and 210 (in millions). Suppose the investor knows the population standard deviation is 25 million. Calculate a 95% confidence interval of the population mean earnings forecast.

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Definitions:

Devolution

The transfer or delegation of power to a lower level, especially by central government to local or regional administration.

Federal Government

The national government of a federated state, which shares power with sub-national entities.

State and Local Governments

The subdivisions of government within specific geographic areas that are smaller than the national level, responsible for local administration and governance.

Federal Bureaucracy

The agencies and employees of the executive branch of the U.S. federal government responsible for the implementation and administration of federal laws and policies.