CFA Practice Question

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CFA Practice Question

Mileage tests were conducted on a randomly selected sample of 100 newly developed automobile tires. The average tread wear was found to be 50,000 miles with a standard deviation of 3,500 miles. What is the best estimate of the average tread life, in miles, for the entire population of these tires?

A. 50,000
B. (3,500/100)
C. (50,000/100)
Correct Answer: A

The sample mean is a good estimate of the population mean.

User Contributed Comments 5

User Comment
8thlegend I spent 10 mins figuring out how to do this. Then i realized that this was the first question and wasted 10 mins of my life.
thekid 8thlegend---> 10minutes + the time it took you to post up your comment in regards to this "first question"
lol..i'm going insane.
Ktrain 10 minutes + the 250 hours studying for this test
2014 Sample represents population, The purpose of picking up sample serves the estimation of same results.

U cannot do research on entire population of tyres. So u have selected a sample. Now, sample results u would rely to predict information. There is no choice or this is best choice to estimate
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