Question
The average annual total return for U.S. Diversified Equity mutual funds from 1999 to 2003 was 4.1%.A researcher would like to conduct a hypothesis test
The average annual total return for U.S. Diversified Equity mutual funds from 1999 to 2003 was 4.1%.A researcher would like to conduct a hypothesis test to see whether the returns for mid-cap growth over the same period are significantly different from the average for U.S. Diversified Equity funds.Based on previous studies, use a population standard deviation of= 2%.
You choose a sample of 40 mid-cap growth funds that provide a sample mean return of 3.4%.State the null and alternative hypotheses for this problem.You will use the Critical Value approach.At the 0.01 level of significance, what is your critical value(s)?
a.approx -2.575 and +2.575
b.approx -2.33 and +2.33
c.approx 2.33
d.none of the above
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