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 returnfor 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 o = 0.10 level of significance? A normal probabilityplot 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 HClick to select your answer(s) and then click Check Answer.partsremainingClear AllCheck Answer

S.D is 5% we need to provide the null and the alternate hypothesis

Answered: What are the correct hypotheses for…

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What are the correct hypotheses for this test? The null hypothesis is Ho: The alternative hypothesis is H,:

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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Question

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 o = 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
Click to select your answer(s) and then click Check Answer.
parts
remaining
Clear All
Check Answer

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