A study of the investment industry claims that 58% of all mutual funds outperformed the stock market

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A study of the investment industry claims that 58% of all mutual funds outperformed the stock market as a whole last year. An analyst wants to test this claim and obtains a random sample of 250 mutual funds. The analyst finds that only 123 of the funds outperformed the market during the year. Determine the probability that another random sample would lead to a sample proportion as low as or lower than the one obtained by the analyst, assuming the proportion of all mutual funds that outperformed the market is indeed 0.58.
Mutual Funds
Mutual funds are like a pool of funds gathered by different small investors that have simalar investment perspective about returns on their investments. These funds are managed by professional investment managers who act smartly on behalf of the...
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Complete Business Statistics

ISBN: 9780077239695

7th Edition

Authors: Amir Aczel, Jayavel Sounderpandian

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