### Assessing the Risk Level of a Mutual FundSuppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 3%. A mutual fund rating agency randomly selects 22 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 2.08%. Is there sufficient evidence to conclude that the fund has moderate risk at the α = 0.10 level of significance? A normal probability plot indicates that the monthly rates of return are normally distributed.---#### Hypothesis Testing**What are the correct hypotheses for this test?**- The null hypothesis is $ H_0: \sigma $ [dropdown]- The alternative hypothesis is $ H_1: \sigma $ [dropdown]**Calculate the value of the test statistic.**- $\chi^2 =$ [Textbox] (Round to three decimal places as needed.)**Use technology to determine the P-value for the test statistic.**- The P-value is [Textbox]. (Round to three decimal places as needed.)**What is the correct conclusion at the $\alpha = 0.10$ level of significance?**- Since the P-value is [dropdown] than the level of significance, [dropdown] the null hypothesis. There [dropdown] sufficient evidence to conclude that the fund has moderate risk at the 0.10 level of significance.---By completing the above steps, you can determine whether the mutual fund's risk level qualifies as moderate based on the given data and significance level.

Chi square test are used to test the population variance. It determine the relationship between the…

Answered: Suppose a mutual fund qualifies as…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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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 6%. A mutual-fund rating agency randomly selects 23 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 5.37%. Is there sufficient evidence to conclude that the fund has moderate risk at the a= 0.10 level of significance? A normal probability plot indicates that the monthly rates of return are normally distributed. What are the correct hypotheses for this test? The null hypothesis is H.: = 0.06. The alternative hypothesis is H₁: O Calculate the value of the test statistic. = 17.62 (Round to two decimal places as needed.) Use technology to determine the P-value for the test statistic. The P-value is (Round to three decimal places as needed) n example Get more help - < 0.06. 16 (DELL) M
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