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 26 months and determines the rate of return for a certain fund. The standard deviat of the rate of return is computed to be 2.22%. 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: o = 0.03. The alternative hypothesis is H,: o < 0.03. Calculate the value of the test statistic. 2 = (Round to three decimal places as needed.)
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 26 months and determines the rate of return for a certain fund. The standard deviat of the rate of return is computed to be 2.22%. 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: o = 0.03. The alternative hypothesis is H,: o < 0.03. Calculate the value of the test statistic. 2 = (Round to three decimal places as needed.)
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
Calculate the value of the test statistic.
Determine P value.
Reject or do not reject?
![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 26 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 2.22%. 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 \( H_0: \sigma = 0.03 \).
The alternative hypothesis is \( H_1: \sigma < 0.03 \).
Calculate the value of the test statistic.
\[
\chi^2 = \, \text{(Round to three decimal places as needed.)}
\]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbddff84f-1eec-437a-bda9-9aa11ca54354%2F9eb0a0d6-ce46-41d4-bf8d-27ee09686f27%2Feiisix_processed.png&w=3840&q=75)
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 3%. 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 2.22%. 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 \( H_0: \sigma = 0.03 \).
The alternative hypothesis is \( H_1: \sigma < 0.03 \).
Calculate the value of the test statistic.
\[
\chi^2 = \, \text{(Round to three decimal places as needed.)}
\]
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