### Hypothesis Testing for Mutual Fund Risk**Context:**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 21 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 2.63%. Is there sufficient evidence to conclude that the fund has moderate risk at the $\alpha$ = 0.05 level of significance? A normal probability plot indicates that the monthly rates of return are normally distributed.**Hypothesis Statements:**1. **Null Hypothesis (H$_0$)**: \[ \sigma = 0.04 \] 2. **Alternative Hypothesis (H$_1$)**: \[ \sigma < 0.04 \]**Task:**Calculate the value of the test statistic $\chi^2_0$.**Input for Calculation:**\[\chi^2_0 = \boxed{} \, \text{(Round to two decimal places as needed.)}\]**Additional Resources:**- *Help me solve this*- *View an example*- *Get more help*### Interface Elements:- **Clear all**: This button is used to reset the inputs and start the calculation afresh.- **Check answer**: Once the required calculation is done, this button can be used to verify the answer.### Screenshot Explanation:The image shows an educational webpage where students are taught hypothesis testing. The context and hypotheses are clearly defined. Input fields are provided for entering the test statistic value and confirming the hypothesis test solution.### Visual Analysis:There are no graphs or diagrams in the image that require further explanation.

Given data: The sample size is n=21. The population standard deviation is σ=0.04.…

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 4%. A mutual-fund rating agency randomly selects 24 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 3.62%. Is there sufficient evidence to conclude that the fund has moderate risk at the a= 0.05 level of significance? A normal probability plot indicates that the monthly rates of return are normally USPRILAAOIogy w uetermne ume r-varue iur uie est stausut. The P-value is. (Round to three decimal places as needed.) Vi (00) More Enter your answer in the answer box and then click Check Answer. (? 1 part remaining Clear All Check Answer PPearson OVI 10:29 hp esc DII %23 96 & 4. 6. backspa r y a j k V alt alt ctrl USE YOUR SMAR Reviews Vld Specs
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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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
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…
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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 5.26%. Is there sufficient evidence to conclude that the fund has moderate risk at the α=0.05 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? The alternative hypothesis is? Calculate the value of the test statistic The P-value is (Round to three decimal places as needed.) What is the correct conclusion at the α=0.05 level of significance?
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…
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