Your investment goal is to choose only from mutual fund groups with at least 10% foreign equity.

Question:

Your investment goal is to choose only from mutual fund groups with at least 10% foreign equity. To determine whether the Canadian equity funds group meets your criterion, you randomly sample 33 of the funds in that category. The mean foreign equity percentage in your sample is 8.386, with a standard deviation of 7.126 (based on data from Update, Bank of Montreal, March 31, 1998). Do the Canadian equity funds fail to meet your criterion? What could be the consequence if your conclusion is a type I or type II error? Mutual Funds
Mutual funds are like a pool of funds gathered by different small investors that have simalar investment perspective about returns on their investments. These funds are managed by professional investment managers who act smartly on behalf of the...