Suppose 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. What are the correct hypotheses for this test? The null hypothesis is Ho: ▼ The alternative hypothesis is H₁: Calculate the value of the test statistic. x² = (Round to three 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.) What is the correct conclusion at the x = 0.10 level of significance? Since the P-value is than the level of significance, the null hypothesis. There sufficient evidence to conclude that the fund has moderate risk at the 0.10 level of significance.
Suppose 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. What are the correct hypotheses for this test? The null hypothesis is Ho: ▼ The alternative hypothesis is H₁: Calculate the value of the test statistic. x² = (Round to three 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.) What is the correct conclusion at the x = 0.10 level of significance? Since the P-value is than the level of significance, the null hypothesis. There sufficient evidence to conclude that the fund has moderate risk at the 0.10 level of significance.
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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![### Assessing the Risk Level of a Mutual Fund
Suppose 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.
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#### 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9e2dce9f-bcdf-4f32-a081-371e2dab1fcb%2F37c52b0e-6307-46a6-9e69-53a589f122d9%2F1urqdro_processed.png&w=3840&q=75)
Transcribed Image Text:### Assessing the Risk Level of a Mutual Fund
Suppose 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.
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