Mutual funds are classified as large-cap funds, medium-cap funds, or small-cap funds, depending on the capitalization of the companies in the fund. Hawaii Pacific University researchers S. Shi and M. Seiler investigated whether the average performance of a mutual fund is related to capitalization size {American Business Review, Jan. 2002). Independent random samples of 30 mutual funds were selected from each of the three fund groups, and the 90-day rate of return was determined for each fund. The data for the 90 funds were subjected to an analysis of variance, with the results shown in the ANOVA summary table below.

a. State the null and alternative hypotheses for the ANOVA.
b. Give the rejection region for the test using a = .01.
c. Make the appropriate conclusion using either the test statistic or the p-value.

Transcribed Image Text:

Source df MS F p-Value Fund group 2 409.566 204.783 6.965 002 Error 87 2,557.860 29.401 89 2967.426 Total