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 23 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 4.46%. 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. Click the icon to view the table of critical values of the chi-square distribution. 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. (Round to two decimal places as needed.) Identify the critical value(s) for this test. (Round to two decimal places as needed. Use a comma to separate answers as needed.) What is the correct conclusion at the a=0.10 level of significance? Since the test statistic is than the critical value, the null hypothesis. There sufficient evidence at the a = 0.10 level of significance to conclude that the fund has moderate risk.

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 23 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 4.46%. 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. Click the icon to view the table of critical values of the chi-square distribution. 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. (Round to two decimal places as needed.) Identify the critical value(s) for this test. (Round to two decimal places as needed. Use a comma to separate answers as needed.) What is the correct conclusion at the a=0.10 level of significance? Since the test statistic is than the critical value, the null hypothesis. There sufficient evidence at the a = 0.10 level of significance to conclude that the fund has moderate risk.

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter13: Probability And Calculus

Section13.CR: Chapter 13 Review

Problem 10CR

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