Qstatistical inference confidence intervals and hypothesis, Ask an Expert

Economics

Q. Statistical Inference: Confidence Intervals and Hypothesis Tests. Suppose that a sample of economists are forecasting whether and by how much the Federal Reserve Bank will change the federal funds rate when they meet in early February. Of the 20 economists surveyed, 5 believe that the Fed will leave the federal funds rate unchanged at 2.00%, 4 believe that the Fed will raise the rate to 2.25%, and 11 believe that the Fed will cut the rate to 1.75%.

a. Find the mean and standard deviation for the forecasted federal funds rate in this sample of economists.

b. Using the calculations from part a, and the methods described in class, calculate a 99% confidence interval for the population mean forecast, where the population 3 would consist of all economists.

c. What assumptions are needed to justify the methods used in parts a & b?

d. What if you were told that all economists in the sample were employed at UC campuses? Which of the assumptions given in c do you think would be violated?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9722061

Have any Question?Write your Review or question?

Related Questions in Business Economics

The first part of the question is how do you determine if a

The first part of the question is how do you determine if a data set is normally distributed? The second part of the question is what is the Z score and how is that related to the distribution.

If all congressional representatives were elected at the

If all congressional representatives were elected at the state level rather than from particular districts, explain whether there would be more protectionism or less protectionism. Why? Explain your answer.

In this question you need a z table and then you can get

In this question you need a Z table and then you can get all answers? You have a normal distribution with a mean of 90 and a standard deviation of 7. If appropriate, calculate the following probabilities: What is: Probab ...

A manager has a utility functionnbspunbspnbspcnbsp05nbspif

A manager has a utility function U = C 0.5 if she doesn't work hard and U = C 0.5 - 3 if she does. Expected profit will increase from 1,000 to 1,500 if she works hard. The manager receives compensation C equa ...

Last years budget for the legislative branch of a certain

Last years budget for the legislative branch of a certain government was 4938 million, and this year was 5320 million. Consider last year budget of 4938 million to be the reference value. 1. What will the absolute change ...

What is the central limit theorem why does it make the use

What is the Central Limit Theorem? Why does it make the use of the common inferential tools possible even if the raw data is not distributed normally?

What are the four main points of difference in terms of

What are the four main points of difference in terms of utility, value, rationality, and equilibrium between the classical and neoclassical schools of thought? Briefly describe each one.

Determine the minimum sample size required when you want to

Determine the minimum sample size required when you want to be 98% confident that the sample mean is within two units of the population mean. Assume a standard deviation of 4.82 in a normally distributed population.

The standard deviation of the number of video game as

The standard deviation of the number of video game A's outcomes is 0.5479, while the standard deviation of the number of video game B's outcomes is 0.2498. Which game would you be likely to choose if you wanted players t ...

Suppose there is no inflation and an insurance company

Suppose there is no inflation and an insurance company offers a contract that would pay $500,000 with certainty 50 years from now. What is the most that this contract would be worth today if: 1. The rate of interest is 7 ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert