Quantitative Foundations for Finance - 2.28 - Z-Intervals and t-Intervals

Quantitative Foundations for Finance Module 2: Statistical Inference / Confidence Intervals Video 28 of the course When the population standard deviation is known or treatable as such, the z-interval draws critical values like 1.96, 1.645, and 2.576 from the standard normal; when sigma is replaced with the sample standard deviation s, the additional uncertainty requires t-distribution critical values with n minus 1 degrees of freedom. A large-cap index fund with 100 months of returns justifies a z-interval, while a private equity fund of funds with only four years of history per fund does not. Course dashboard: https://therationalquant.com (coming soon) (c) Harrison Ham, Department of Finance, Clemson University