Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 3%. 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 2.15%. 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. What are the correct hypotheses for this test? The null hypothesis is Hp: = 0.03. The alternative hypothesis is H,: 0.03. Calculate the value of the test statistic. 2 = (Round to three decimal places as needed.)

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Find Test Statistic, P value, and Z score.

Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 3%. 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 2.15%. 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.
.....
What are the correct hypotheses for this test?
The null
hypothesis is
Hoi o =
0.03.
The alternative hypothesis is H;:
0.03.
Calculate the value of the test statistic.
x = (Round to three decimal places as needed.)
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 3%. 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 2.15%. 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. ..... What are the correct hypotheses for this test? The null hypothesis is Hoi o = 0.03. The alternative hypothesis is H;: 0.03. Calculate the value of the test statistic. x = (Round to three decimal places as needed.)
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