In Order to Estimate the Mean Earnings Forecast for a Large

question 69

Short Answer

In order 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:

Value Creation

What occurs when the result of a work task or activity makes a product or service worth more in terms of potential customer appeal than at the start.

Sustainable Business

A business approach that focuses on meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Natural Environment

All living and non-living things occurring naturally, such as land, water, air, plants, and animals, which are essential for human survival and economic activity.

Uncertain Environment

An external context in which it is difficult to predict future conditions or outcomes, often leading to challenges in planning and decision making.