(a) Set up the null and alternative hypotheses needed to attempt to establish that the mean annual expense for stock funds is larger than the mean annual expense for municipal bond funds. Test these hypotheses at the 0.05 level of significance. (Round your sp² answer to 4 decimal places and t-value to 2 decimal places.) HO: μ1 - μ2 s2p HO with a = 0.05 HO: μ1 - μ2 t= versus Ha: µ1 - µ2 > (b) Set up the null and alternative hypotheses needed to attempt to establish that the mean annual expense for stock funds exceeds the mean annual expense for municipal bond funds by more than 0.5 percent. Test these hypotheses at the 0.05 level of significance. (Round your t-value to 2 decimal places and other answers to 1 decimal place.) HO with a = 0.05 4.86 versus Ha : μ1 −μ2 (c) Calculate a 95 percent confidence interval for the difference between the mean annual expenses for stock funds and municipal bond funds. Can we be 95 percent confident that the mean annual expense for stock funds exceeds that for municipal bond funds by more than .5 percent? (Round your answers to 3 decimal places.)

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
An article in Fortune magazine reported on the rapid rise of fees and expenses charged by mutual funds. Assuming that stock fund
expenses and municipal bond fund expenses are each approximately normally distributed, suppose a random sample of 12 stock
funds gives mean annual expense of 1.49 percent with a standard deviation of 0.33 percent, and an independent random sample of
12 municipal bond funds gives a mean annual expense of 0.90 percent with a standard deviation of 0.26 percent. Let ₁ be the mean
annual expense for stock funds, and let ₂ be the mean annual expense for municipal bond funds. Do parts a, b, and c by using the
equal variances procedure.
(a) Set up the null and alternative hypotheses needed to attempt to establish that the mean annual expense for stock funds is larger
than the mean annual expense for municipal bond funds. Test these hypotheses at the 0.05 level of significance. (Round your sp²
answer to 4 decimal places and t-value to 2 decimal places.)
HO: μ1 - μ2
s2p
HO: μ1 - μ2
t=
S
HO with a = 0.05
The interval = [
(b) Set up the null and alternative hypotheses needed to attempt to establish that the mean annual expense for stock funds exceeds
the mean annual expense for municipal bond funds by more than 0.5 percent. Test these hypotheses at the 0.05 level of significance.
(Round your t-value to 2 decimal places and other answers to 1 decimal place.)
versus Ha: µ1 - µ2
t=
HO with a = 0.05
4.86
versus Ha: μ1 - µ2
(c) Calculate a 95 percent confidence interval for the difference between the mean annual expenses for stock funds and municipal
bond funds. Can we be 95 percent confident that the mean annual expense for stock funds exceeds that for municipal bond funds by
more than .5 percent? (Round your answers to 3 decimal places.)
the interval is
0.5.
Transcribed Image Text:An article in Fortune magazine reported on the rapid rise of fees and expenses charged by mutual funds. Assuming that stock fund expenses and municipal bond fund expenses are each approximately normally distributed, suppose a random sample of 12 stock funds gives mean annual expense of 1.49 percent with a standard deviation of 0.33 percent, and an independent random sample of 12 municipal bond funds gives a mean annual expense of 0.90 percent with a standard deviation of 0.26 percent. Let ₁ be the mean annual expense for stock funds, and let ₂ be the mean annual expense for municipal bond funds. Do parts a, b, and c by using the equal variances procedure. (a) Set up the null and alternative hypotheses needed to attempt to establish that the mean annual expense for stock funds is larger than the mean annual expense for municipal bond funds. Test these hypotheses at the 0.05 level of significance. (Round your sp² answer to 4 decimal places and t-value to 2 decimal places.) HO: μ1 - μ2 s2p HO: μ1 - μ2 t= S HO with a = 0.05 The interval = [ (b) Set up the null and alternative hypotheses needed to attempt to establish that the mean annual expense for stock funds exceeds the mean annual expense for municipal bond funds by more than 0.5 percent. Test these hypotheses at the 0.05 level of significance. (Round your t-value to 2 decimal places and other answers to 1 decimal place.) versus Ha: µ1 - µ2 t= HO with a = 0.05 4.86 versus Ha: μ1 - µ2 (c) Calculate a 95 percent confidence interval for the difference between the mean annual expenses for stock funds and municipal bond funds. Can we be 95 percent confident that the mean annual expense for stock funds exceeds that for municipal bond funds by more than .5 percent? (Round your answers to 3 decimal places.) the interval is 0.5.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman