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ons Exercise 11.16 Algo (Inferences About Two Population Variances) Question 2 of 5 Check My Work (3 remaining) Investors commonly use the standard deviation of
ons Exercise 11.16 Algo (Inferences About Two Population Variances) Question 2 of 5 Check My Work (3 remaining) Investors commonly use the standard deviation of the monthly percentage return for a mutual fund as a measure of the risk for the fund; in such cases, a fund that has a larger standard deviation is considered more risky than a fund with a lower standard deviation. The standard deviation for the American Century Equity Growth fund and the standard deviation for the Fidelity Growth Discovery fund were reported to be 14.9% and 18.8%, respectively. Assume that each of these standard deviations is based on a sample of 60 months of returns. Do the sample results support the conclusion that the Fidelity fund has a larger population variance than the American Century fund? Which fund is more risky? State the null and alternative versions of the research hypothesis that the Fidelity fund has a larger population variance than the American Century fund. Let the Fidelity fund be represented by population 1. Ho : 07 - Select your answer - Ha : 07 - Select your answer - Calculate the value of the test statistic (to 4 decimals) The p-value is - Select your answer - ~|. Use Table 4 of Appendix B. At a 0.05 level of significance what is your conclusion? - Select your answer - v that the Fidelity fund has a greater variance than the American Century fund. Therefore, - Select your answer - is more risky. Check My Work (3 remaining) O Icon Key 12: 70 OF ~ DO B D 3/3 O Ei 99+
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