Mutual funds are classified as load or no-load funds. Load funds require an investor to pay an initial fee based on a percentage of the amount invested in the fund. The no-load funds do not require this initial fee. Some financial advisors argue that the load mutual funds may be worth the extra fee because these funds provide a higher mean rate of return than the no-load mutual funds. A sample of 30 load mutual funds and a sample of 30 no-load mutual funds selected for analysis are contained in the Excel Online file below. Data were collected on the annual return for the funds over a five-year period. Construct a spreadsheet to answer the following questions. Due to a recent change by Microsoft you will need to open the XLMiner Analysis ToolPak add-in manually from the home ribbon. Screenshot of ToolPak X Open spreadsheet a. Formulate Ho and Ha such that rejection of Ho leads to the conclusion that the load mutual funds have a higher mean annual return over the five-year period. Ho load no-load S Ha load no-load > b. Use the 60 mutual funds in the table above to conduct the hypothesis test. What is the p-value? p-value is 0.0099 (to 4 decimals) At a = .05, what is your conclusion? Can conclude Ⓒ Check My Work 0 O 0 that the mutual funds with a load have a greater mean rate of return. Reset Problem

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Mutual funds are classified as load or no-load funds. Load funds require an investor to pay an initial fee based on a percentage of the amount invested in the fund. The no-load funds
do not require this initial fee. Some financial advisors argue that the load mutual funds may be worth the extra fee because these funds provide a higher mean rate of return than the
no-load mutual funds. A sample of 30 load mutual funds and a sample of 30 no-load mutual funds selected for analysis are contained in the Excel Online file below. Data were collected
on the annual return for the funds over a five-year period. Construct a spreadsheet to answer the following questions.
Due to a recent change by Microsoft you will need to open the XLMiner Analysis ToolPak add-in manually from the home ribbon. Screenshot of ToolPak
X
Open spreadsheet
a. Formulate
Ho and
Ha such that rejection of
Ho leads to the conclusion that the load mutual funds have a higher mean annual return over the five-year period.
Ho: Mload Uno-load s ↑
Ha: load
Uno-load >
b. Use the 60 mutual funds in the table above to conduct the hypothesis test. What is the p-value?
p-value is 0.0099
(to 4 decimals)
At a
=
.05, what is your conclusion?
Can conclude
♥
0
0
Check My Work
that the mutual funds with a load have a greater mean rate of return.
Reset Problem
Transcribed Image Text:Mutual funds are classified as load or no-load funds. Load funds require an investor to pay an initial fee based on a percentage of the amount invested in the fund. The no-load funds do not require this initial fee. Some financial advisors argue that the load mutual funds may be worth the extra fee because these funds provide a higher mean rate of return than the no-load mutual funds. A sample of 30 load mutual funds and a sample of 30 no-load mutual funds selected for analysis are contained in the Excel Online file below. Data were collected on the annual return for the funds over a five-year period. Construct a spreadsheet to answer the following questions. Due to a recent change by Microsoft you will need to open the XLMiner Analysis ToolPak add-in manually from the home ribbon. Screenshot of ToolPak X Open spreadsheet a. Formulate Ho and Ha such that rejection of Ho leads to the conclusion that the load mutual funds have a higher mean annual return over the five-year period. Ho: Mload Uno-load s ↑ Ha: load Uno-load > b. Use the 60 mutual funds in the table above to conduct the hypothesis test. What is the p-value? p-value is 0.0099 (to 4 decimals) At a = .05, what is your conclusion? Can conclude ♥ 0 0 Check My Work that the mutual funds with a load have a greater mean rate of return. Reset Problem
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