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 26 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 2.75%. 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 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=O (Round to three decimal places as needed.) Use technology to determine the P-value for the test statistic. The P-value is O (Round to three decimal places as needed.) What is the correct conclusion at the a=0.05 level of significance? Since the P-value is than the level of significance. the null hypothesis. There V sufficient evidence to conclude that the fund has moderate risk at the 0.05 level of significance.

MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
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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 26 months and determines the rate of return for a certain fund. The
standard deviation of the rate of return is computed to be 2.75%. 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 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 = 0.05 level of significance?
than the level of significance,
evidence to conclude that the fund has moderate risk at the 0.05 level of significance.
Since the P-value is
the null hypothesis. There
sufficient
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 4%. 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 2.75%. 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 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 = 0.05 level of significance? than the level of significance, evidence to conclude that the fund has moderate risk at the 0.05 level of significance. Since the P-value is the null hypothesis. There sufficient
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