- CFA Exams
- CFA Level I Exam
- Study Session 3. Quantitative Methods (2)
- Reading 10. Sampling and Estimation
- Subject 6. Confidence Intervals for the Population Mean

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**CFA Practice Question**

A normal distribution has a mean of 25% and a standard deviation of 33%. What is the 95% confidence interval around the mean (i.e., if 95% of observations can be expected to fall in this range)?

A. -29.29; 79.29

B. -8.00; 58.00

C. -39.68; 89.68

**Explanation:**The 95% confidence interval corresponds to a multiple of 1.96 for standard deviation. Thus, the range or interval is 25% ± 1.96 x 33% = [-39.68, 89.68].

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