Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 4%. A mutual-fund rating agency randomly selects 27 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 3.71%. Is there sufficient evidence to conclude that the fu has moderate risk at the a= 0.01 level of significance? A normal probability plot indicates that the monthly rates of return are normally distributed. Click the icon to view the table of critical values of the chi-square distribution. The null hypothesis is Ho The alternative hypothesis is H₁: Calculate the value of the test statistic. (Round to two decimal places as needed.) Identify the critical value(s) for this test. (Round to two decimal places as needed. Use a comma to separate answers as needed.) What is the correct conclusion at the α = 0.01 level of significance? than the critical value. Since the test statistic is the fund has moderate risk. T www Search the null hypothesis. There LOOLON sufficient evidence at the x = 0.01 level of significance to conclude that Next 1:58 PM 2/15/2023

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
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Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 4%. A mutual-fund rating agency randomly selects 27
months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 3.71%. Is there sufficient evidence to conclude that the fu
has moderate risk at the a= 0.01 level of significance? A normal probability plot indicates that the monthly rates of return are normally distributed.
Click the icon to view the table of critical values of the chi-square distribution.
The null hypothesis is Ho
The alternative hypothesis is H₁:
Calculate the value of the test statistic.
(Round to two decimal places as needed.)
Identify the critical value(s) for this test.
(Round to two decimal places as needed. Use a comma to separate answers as needed.)
What is the correct conclusion at the α = 0.01 level of significance?
than the critical value.
Since the test statistic is
the fund has moderate risk.
T
www
Search
the null hypothesis. There
LOOLON
sufficient evidence at the x = 0.01 level of significance to conclude that
Next
1:58 PM
2/15/2023
Transcribed Image Text:Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 4%. A mutual-fund rating agency randomly selects 27 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 3.71%. Is there sufficient evidence to conclude that the fu has moderate risk at the a= 0.01 level of significance? A normal probability plot indicates that the monthly rates of return are normally distributed. Click the icon to view the table of critical values of the chi-square distribution. The null hypothesis is Ho The alternative hypothesis is H₁: Calculate the value of the test statistic. (Round to two decimal places as needed.) Identify the critical value(s) for this test. (Round to two decimal places as needed. Use a comma to separate answers as needed.) What is the correct conclusion at the α = 0.01 level of significance? than the critical value. Since the test statistic is the fund has moderate risk. T www Search the null hypothesis. There LOOLON sufficient evidence at the x = 0.01 level of significance to conclude that Next 1:58 PM 2/15/2023
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