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X File | C:/Users/USER/Desktop/semster1/Statistic/med/MSF_502_Mid_Term_Exam_01.pdf G 3 12 of 16 + Page view A Read aloud | V Draw Highlight v Erase 5. (10 points) During
X File | C:/Users/USER/Desktop/semster1/Statistic/med/MSF_502_Mid_Term_Exam_01.pdf G 3 12 of 16 + Page view A Read aloud | V Draw Highlight v Erase 5. (10 points) During a 10-year period, the standard deviation of annual returns on a portfolio you are analyzing was 0.15 a year. You want to see whether this record is sufficiently evident to support the conclusion that the portfolio's underlying variance of return was less than 0.04, the return variance of the portfolio's benchmark. You choose the level of significance to be 0.05. 5.1 (2 points) formulate null and alternative hypotheses consistent with the verbal description of your objective. 5.2. (4 points) Identify and calculate the test statistic 5.3. (4 points) State your decision rule and make your decision regarding whether to reject the null hypothesis in 5.1. Type here to search W 10:34 PM 65.F M E 10/20/2021 26
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