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 26 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 4.42%. 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,: The alternative hypothesis is H, Calculate the value of the test statistic. Y= (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=0.10 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 6%. A mutual-fund rating agency randomly selects 26 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 4.42%. 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,: The alternative hypothesis is H, Calculate the value of the test statistic. Y= (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=0.10 level of significance?
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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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 6%. A mutual-fund rating agency randomly selects 26 months and determines the rate of
return for a certain fund. The standard deviation of the rate of return is computed to be 4.42%, 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 Ho:
The alternative hypothesis is H,:
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=0.10 level of significance?
Transcribed Image Text: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 = 0.10 level of significance?
Since the P-value is
V than the level of significance,
V the null hypothesis. There
V sufficient evidence to conclude that the fund has moderate risk at the 0.10 level of significance.
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