Estimating samples

Practical Application Scenario 1

Refer to McDonald Historical dataexcel…, build a 95 percent confidence intervalfor the daily stock volume using your downloaded data. What does this confidence interval mean? Why might decision makers be interested in such an interval?

Practical Application Scenario 2

To complete this scenario, use the Sample Size Estimator file (attached) provided in Resources.

For the McDonalds Stock, what size sample would you need to bracket the adjusted daily closing price within 50 cents (for example, a margin of error of 50 cents)? Use the standard deviationfrom your data for your calculations, and assume this standard deviation represents the population standard deviation.

The Solution finds a a 95 percent confidence interval for the daily stock volume and the size sample needed to bracket the adjusted daily closing price within 50 cents.