Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help Please Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 49%.

Help Please

image text in transcribed
Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 49%. A mutual-fund rating agency randomly selects 28 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 2.75%. Is there sufficient evidence to conclude that the fund has moderate risk at the o=0.05 level of significance? A normal probability plot indicates that the monthly rates of return are normally distributed. What are the correct hypotheses for this test? The null hypothesis is Ho: The alternative hypothesis is H,: Calculate the value of the test statistic. (Round to three decimal places as needed.) Use technology to determine the P-value for the test statistic. The P-value is (Round to three decimal places as needed.) What is the correct conclusion at the @ = 0.05 level of significance? Since the P-value is than the level of significance, the null hypothesis. There sufficient evidence to conclude that the fund has moderate risk at the 0.05 level of significance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Discrete Mathematics

Authors: Gary Chartrand, Ping Zhang

1st Edition

1478616261, 9781478616269

More Books

Students also viewed these Mathematics questions

Question

Prove Equation (5.22).

Answered: 1 week ago

Question

1. What does this mean for me?

Answered: 1 week ago