17. ) Most individuals are aware of the fact that the average annual repair cost for an auto- mobile depends on the age of the automobile. A researcher is interested in finding out whether the variance of the annual repair costs also increases with the age of the auto- mobile. A sample of 26 automobiles 4 years old showed a sample standard deviation for annual repair costs of $170 and a sample of 25 automobiles 2 years old showed a sample standard deviation for annual repair costs of $100. State the null and alternative versions of the research hypothesis that the variance in annual repair costs is larger for the older automobiles. b. At a .01 level of significance, what is your conclusion? What is the p-value? Discuss the reasonableness of your findings. a.

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Chapter1: Starting With Matlab
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mnomy 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 recently reported to be 15.0% and
18.9%, 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?
(17. ) Most individuals are aware of the fact that the average annual repair cost for an auto-
mobile depends on the age of the automobile. A researcher is interested in finding out
whether the variance of the annual repair costs also increases with the age of the auto-
mobile. A sample of 26 automobiles 4 years old showed a sample standard deviation for
annual repair costs of $170 and a
standard deviation for annual repair costs of $100.
State the null and alternative versions of the research hypothesis that the variance in
annual repair costs is larger for the older automobiles.
b. At a .01 level of significance, what is your conclusion? What is the p-value? Discuss
the reasonableness of your findings.
ple of 25 automobiles 2 years old showed a sample
a.
18. Data were collected on the top 1000 financial advisers by Barron's. Merrill Lynch had
239 people on the list and Morgan Stanley had 121 people on the list. A sample of 16 of
the Merrill Lynch advisers and 10 of the Morgan Stanley advisers showed that the advis-
ers managed many very large accounts with a large variance in the total amount of funds
managed. The standard deviation of the amount managed by the Merrill Lynch advisers
$587 million. The standard deviation of the amount managed by the Morgan.
was S1
%3D
determine
Transcribed Image Text:mnomy 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 recently reported to be 15.0% and 18.9%, 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? (17. ) Most individuals are aware of the fact that the average annual repair cost for an auto- mobile depends on the age of the automobile. A researcher is interested in finding out whether the variance of the annual repair costs also increases with the age of the auto- mobile. A sample of 26 automobiles 4 years old showed a sample standard deviation for annual repair costs of $170 and a standard deviation for annual repair costs of $100. State the null and alternative versions of the research hypothesis that the variance in annual repair costs is larger for the older automobiles. b. At a .01 level of significance, what is your conclusion? What is the p-value? Discuss the reasonableness of your findings. ple of 25 automobiles 2 years old showed a sample a. 18. Data were collected on the top 1000 financial advisers by Barron's. Merrill Lynch had 239 people on the list and Morgan Stanley had 121 people on the list. A sample of 16 of the Merrill Lynch advisers and 10 of the Morgan Stanley advisers showed that the advis- ers managed many very large accounts with a large variance in the total amount of funds managed. The standard deviation of the amount managed by the Merrill Lynch advisers $587 million. The standard deviation of the amount managed by the Morgan. was S1 %3D determine
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