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LOS 11.f: Calculate and interpret the Session Unit 3:
standard error of the sample mean
(SESM), p253 11. Sampling and Estimation
Example, p.254: Suppose a sample contains the past 30 monthly returns for McCreary, Inc. The mean return is 2%
and the sample SD is 20%. Calculate and interpret the SE of the sample mean.
Example: From above, suppose that instead of a sample size of 30, we take a sample of the past 200 monthly returns. Now,
calculate the SESM for the 200-return sample.
Any Observation?
As sample size increased from 30 to 200, SE decreased from 3.6% to 1.4%. WHY?
