Investors not only desire a high return on their money, but they would also like the rate of return to be stable (have a small volatility) from year to year. An investment manager invests with the goal of reducing volatility, measured by the standard deviation, to be less than 4.3. The following data represent the rate of return (in percent) for his mutual fund for the past 12 years. Taking the data as a random sample and assuming that the data follow a normal distribution, is there evidence to support the investor’s claim that his portfolio has a yearly volatility less than 4.3? Use α = 0.1 level of significance. 12.8 16.9 9.0 11.4 10.3 5.6 8.6 11.4 9.3 7.7 13.9 5.7 Hypotheses: Test statistic. Round to 3 decimals. Critical value(s). Round to 3 decimals.
Investors not only desire a high return on their money, but they would also like the rate of return to be stable (have a small volatility) from year to year. An investment manager invests with the goal of reducing volatility, measured by the standard deviation, to be less than 4.3. The following data represent the rate of return (in percent) for his mutual fund for the past 12 years. Taking the data as a random sample and assuming that the data follow a normal distribution, is there evidence to support the investor’s claim that his portfolio has a yearly volatility less than 4.3? Use α = 0.1 level of significance. 12.8 16.9 9.0 11.4 10.3 5.6 8.6 11.4 9.3 7.7 13.9 5.7 Hypotheses: Test statistic. Round to 3 decimals. Critical value(s). Round to 3 decimals.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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- Investors not only desire a high return on their money, but they would also like the rate of return to be stable (have a small volatility) from year to year. An investment manager invests with the goal of reducing volatility, measured by the standard deviation, to be less than 4.3. The following data represent the rate of return (in percent) for his mutual fund for the past 12 years. Taking the data as a random sample and assuming that the data follow a
normal distribution , is there evidence to support the investor’s claim that his portfolio has a yearly volatility less than 4.3? Use α = 0.1 level of significance.
12.8 16.9 9.0 11.4 10.3 5.6
8.6 11.4 9.3 7.7 13.9 5.7
Hypotheses:
Test statistic. Round to 3 decimals.
Critical value(s). Round to 3 decimals.
Conclusion in context.
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