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 ofreturn 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 normalprobability 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? 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 isV than the level of significance,V the null hypothesis. ThereV sufficient evidence to conclude that the fund has moderate risk at the 0.10 level of significance.

Given Population standard deviations σ=6%=0.06, sample standard deviations=s=4.42%=0.0442, level of…

Answered: Suppose a mutual fund qualifies as…

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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