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Mathematics, 20.02.2020 06:06 annekacoleman

An investigator with a stock portfolio worth several hundred thousand dollars sued his broker and brokerage firm because he felt that lack of diversification in his portfolio led to poor performance for many years in a row. In an effort to avoid close public scrutiny, the firm agreed to settle the conflict by an arbitration panel. The arbitration panel compared a sample of 39 months of the investor's returns with the average of the Standard & Poor's 500-stock index for the same period in order to determine whether there was a substantial decrease. Historically, the S&P has a mean return of 0.95. Their data is shown below. Suppose you are a member of this arbitration panel. Construct a 95% confidence interval for the true mean return of the investor's portfolio. Find the margin of error for the 95% confidence interval for the true mean return of the investor's portfolio. (Round all to 3 decimal places.)

a. What is the lower bound of your confidence level?

b. What is the upper bound of your confidence level?

c. Is the alternative hypothesis one tailed or two?

d. What is the t-score for this test?

e. What is the p-value for this test?

Data: -8.63 6.82 -9.16 -.65 -2.14 1.63 -2.35 -1.25 4.34 -1.01 -2.27 -3.58 -1.22 12.22 -1.41 -2.93 6.13 -10.27 -7.21 12.03 -2.70 7.00 -5.11 -.09 -2.56 -2.93 -15.25 -.80 7.34 4.33 -9.14 -8.66 -1.44 5.04 2.35 -2.64 -1.03 1.28 -7.24

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