Investors commonly use the standard deviation of the monthly percentage return for a mutual fund as a measure of the risk for the fund; in such cases, a fund that has a larger standard deviation is considered more risky than a fund with a lower standard deviation. The standard deviation for a certain fund, referred to as Fund A, and the standard deviation for a second fund, Fund B, were recently reported to be 15.0% and 19.2%, respectively. Assume that each of these standard deviations is based on a sample of 60 months of returns. Do the sample results support the conclusion that the Fund B has a larger population variance than Fund A? (Assume that ? = 0.05.) test statistic is 1.6384 p-value = 0.0301 State your conclusion. Reject H0. We cannot conclude that the Fund B has a greater variance than Fund A. Do not reject H0. We can conclude that the Fund B has a greater variance than Fund A. Do not reject H0. We cannot conclude that the Fund B has a greater variance than Fund A. Reject H0. We can conclude that the Fund B has a greater variance than Fund A. Which fund is more risky? The more risky fund is ---Select--- Fund A or Fund B .
Investors commonly use the standard deviation of the monthly percentage return for a mutual fund as a measure of the risk for the fund; in such cases, a fund that has a larger standard deviation is considered more risky than a fund with a lower standard deviation. The standard deviation for a certain fund, referred to as Fund A, and the standard deviation for a second fund, Fund B, were recently reported to be 15.0% and 19.2%, respectively. Assume that each of these standard deviations is based on a sample of 60 months of returns. Do the sample results support the conclusion that the Fund B has a larger population variance than Fund A? (Assume that ? = 0.05.) test statistic is 1.6384 p-value = 0.0301 State your conclusion. Reject H0. We cannot conclude that the Fund B has a greater variance than Fund A. Do not reject H0. We can conclude that the Fund B has a greater variance than Fund A. Do not reject H0. We cannot conclude that the Fund B has a greater variance than Fund A. Reject H0. We can conclude that the Fund B has a greater variance than Fund A. Which fund is more risky? The more risky fund is ---Select--- Fund A or Fund B .
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section: Chapter Questions
Problem 8PT
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Investors commonly use the standard deviation of the monthly percentage return for a mutual fund as a measure of the risk for the fund; in such cases, a fund that has a larger standard deviation is considered more risky than a fund with a lower standard deviation. The standard deviation for a certain fund, referred to as Fund A, and the standard deviation for a second fund, Fund B, were recently reported to be 15.0% and 19.2%, respectively. Assume that each of these standard deviations is based on a sample of 60 months of returns. Do the sample results support the conclusion that the Fund B has a larger population variance than Fund A? (Assume that ? = 0.05.)
test statistic is 1.6384 p-value = 0.0301
State your conclusion.
Reject H0. We cannot conclude that the Fund B has a greater variance than Fund A.
Do not reject H0. We can conclude that the Fund B has a greater variance than Fund A.
Do not reject H0. We cannot conclude that the Fund B has a greater variance than Fund A.
Reject H0. We can conclude that the Fund B has a greater variance than Fund A.
Which fund is more risky?
The more risky fund is ---Select--- Fund A or Fund B .
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