Concept explainers
To explain: Whether it is reasonable to ask this chosen fund was above the average.
Answer to Problem 1CS
Solution: It is reasonable to ask whether the chosen fund was above the average or not.
Explanation of Solution
To explain: The expected outcome for the significance test.
Solution: The expected outcome of the significant test can be described as the performance of the chosen fund is better than the average performance of all funds.
Explanation: To compare the performance of the funds with the average performance of all the funds, the significance test is performed. The result that can be expected from the test is that the performance of the chosen fund is better than the average performance of all funds. That is, the result of the test is significant.
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Chapter 23 Solutions
Statistics: Concepts and Controversies
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