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 ratingagency randomly selects 21 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be2.63%. Is there sufficient evidence to conclude that the fund has moderate risk at the a= 0.05 level of significance? A normal probability plot indicatesthat 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:▼View an exampleClear allHelp me solve thisGet more help.Check answer#2:14 PM6/18/2022OType here to search$38SX4RFof5T6BHN8hp9ag96°F Mostly sunny7

Let σ denotes the population standard deviation of monthly rate of return for the mutual fund. Given…

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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A new brand of pizza is going to be sold in Park & Shop, and a market-research company in Admiralty (Hong Kong) has forecast that successful new brands normally obtain a 10% market share for the product in the first year. However, top management wants to achieve 12%. You may assume a normal distribution with a standard deviation of 3% (risk on the estimates). Determine each of the following.a. The probability that the new pizza will actually achieve the target.b. The probability of failure.c. The probability of being even more successful, with 18% of market share in the first year.
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
Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 50.5 and a standard deviation of 16. The customers with scores in the bottom 5% are described as "risk averse. What is the questionnaire score that separates customers who are considered risk averse from those who ar not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place. U Continue X S Submit Terms of Use | Privacy Center
The stock price for International Business Machines (IBM) historically has followed an approximately normal distribution (when adjusting for inflation) with a mean of $166.305 and standard deviation of $4.2216. What is the probability that on a selected day the stock price is below $162.5?
Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 50 and a standard deviation of 14. The customers with scores in the bottom 15% are described as "risk averse." What is the questionnaire score that separates customers who are considered risk averse from those who are not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place.
The average return for large-cap domestic stock funds over certain three years was 7.2%. Assume the three-year returns were normally distributed across funds with a standard deviation of 2.2%. What is the probability an individual large-cap domestic stock fund had a three-year return of 5% or less? Group of answer choices 0.10 0.28 0.21
The inflation adjusted annual return of a diversified asset portfolio is assumed to have a normal distribution with a mean of 3.5% and a standard deviation of 1.25%. Represent the value for the inflation adjusted annual return that 95% of outcomes would exceed on a diagram and determine this value.
Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 5%. A mutual-fund rating agency randomly selects 21 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 3.37%. Is there sufficient evidence to conclude that the fund 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. What are the correct hypotheses for this test? The null hypothesis is Ho: 0.0337. > The alternative hypothesis is H4: 0.0337. Calculate the value of the test statistic. 0.05. x² = (Round to three decimal places as n 0.0337. Use technology to determine the P-value for tie iosi diaidiu. The P-value is (Round to three decimal places as needed.) What is the correct conclusion at the a = 0.01 level of significance? Since the P-value is than the level of significance, the null…
Suppose a life insurance company sells a $170,000 1-year term life insurance policy to a 20-year-old female for $300. According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.999544. The expected value of this policy to the insurance company is$222.48. What is the standard deviation of the value of the life insurance policy? Why is the value so high? Part 1 The standard deviation of the value of the life insurance is $
A certain brokerage house wants to estimate the mean daily return on a certain stock. A random sample of 19 days yields the following return percentages. 0.28, 1.92, -1.2, 2.78, 1.97,-0.57, 1.46, -0.93, 0.58,-1.41, -1.15, 0.01, -1.49, −0.94, 1.73, 2.07, -0.83, 1.44, -2.28 Send data to calculator If we assume that the returns are normally distributed, find a 90% confidence interval for the mean daily return on this stock. Give the lower limit and upper limit of the 90% confidence interval. Carry your intermediate computations to at least three decimal places. Round your answers to one decimal place. (If necessary, consult a list of formulas.) Lower limit: 0 Upper limit: 0 X
Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of retum is less than 5%. A mutual-fund rating agency randomly selects 29 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 4.63%. Is there sufficient evidence to conclude that the fund 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. 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. ²=(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 a = 0.01 level of significance? than the level of significance. the null sufficient evidence to conclude that the fund has moderate…
Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 49 and a standard deviation of 16 . The customers with scores in the bottom 15% are described as "risk averse." What is the questionnaire score that separates customers who are considered risk averse from those who are not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place.

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