40. Mutual funds are classified as load or no-load funds. Load funds require an investor to pay an initial fee based on a percentage of the amount invested in the fund. The no-load funds do not require this initial fee. Some financial advisors argue that the load mutual funds may be worth the extra fee because these funds provide a higher mean rate of return than the no-load mutual funds. A sample of 30 load mutual funds and a sample of 30 no-load mutual funds were selected. Data were collected on the annual return for the funds over a fiveyear period. The data are contained in the data set Mutual. The data for the first five load and first five no-load mutual funds are as follows.

Mutual Funds-Load Return Mutual Funds-No Load Return American National Growth 15.51 Amana Income Fund 13.24 Arch Small Cap Equity 14.57 Berger One Hundred 12.13 Bartlett Cap Basic 17.73 Columbia International Stock 12.17 Calvert World International 10.31 Dodge & Cox Balanced 16.06 Colonial Fund A 16.23 Evergreen Fund 17.61

a. Formulate H, and Ha such that rejection of H, leads to the conclusion that the load mu- tual funds have a higher mean annual return over the five-year period.

b. Use the 60 mutual funds in the data set Mutual to conduct the hypothesis test. What is the p-value? At a = .05, what is your conclusion?