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Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 4%. A mutual-fund rating agency rand selects 29 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 2.79%. Is there sufficient evidence to conclude that the fund has moderate risk at the x = 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 Ho: 6 0.04. The alternative hypothesis is H₁: 6 0.0279. Calculate the value of the test statistic. x² = 10.576 (Round to three decimal places as needed.) Use technology to determine the P-value for the test statistic. The P-value is 0.970. (Round to three decimal places as needed.) What is the correct conclusion at the a= 0.10 level of significance? Since the P-value is greater than the level of significance, do not reject the null hypothesis. There is not sufficient evidence to conclude that the fund has

Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 4%. A mutual-fund rating agency rand selects 29 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 2.79%. Is there sufficient evidence to conclude that the fund has moderate risk at the x = 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 Ho: 6 0.04. The alternative hypothesis is H₁: 6 0.0279. Calculate the value of the test statistic. x² = 10.576 (Round to three decimal places as needed.) Use technology to determine the P-value for the test statistic. The P-value is 0.970. (Round to three decimal places as needed.) What is the correct conclusion at the a= 0.10 level of significance? Since the P-value is greater than the level of significance, do not reject the null hypothesis. There is not sufficient evidence to conclude that the fund has

MATLAB: An Introduction with Applications
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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Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 4%. A mutual-fund rating agency randomly selects 29 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 2.79%. Is there sufficient evidence to conclude that the fund has moderate risk at the α = 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 Ho: 6 0.04. The alternative hypothesis is H₁: O 0.0279. Calculate the value of the test statistic. x² = 10.576 (Round to three decimal places as needed.) Use technology to determine the P-value for the test statistic. The P-value is 0.970. (Round to three decimal places as needed.) What is the correct conclusion at the x = 0.10 level of significance? Since the P-value is greater than the level of significance, do not reject the null hypothesis. There is not sufficient evidence to conclude that the fund has moderate risk at the 0.10 level of significance.
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 4%. A mutual-fund rating agency randomly selects 29 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 2.79%. Is there sufficient evidence to conclude that the fund has moderate risk at the α = 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 Ho: 6 0.04. The alternative hypothesis is H₁: O 0.0279. Calculate the value of the test statistic. x² = 10.576 (Round to three decimal places as needed.) Use technology to determine the P-value for the test statistic. The P-value is 0.970. (Round to three decimal places as needed.) What is the correct conclusion at the x = 0.10 level of significance? Since the P-value is greater than the level of significance, do not reject the null hypothesis. There is not sufficient evidence to conclude that the fund has moderate risk at the 0.10 level of significance.
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