Business, 25.02.2020 03:48 lukeritsema88

In a random sample of 32 large cap mutual funds, the average YTD return is 3.05% with a standard deviation of 9.77%. Conduct by hand an appropriate hypothesis test at the 5% level to test whether the average YTD return for a large cap mutual fund is positive. (Again, that means to write the hypotheses, compute the test statistic, and estimate the p-value.) Give your test conclusion in terms of the question being asked. Confirm your test statistic and result with Minitab. Also, interpret the associated confidence bound for this test.

Answers: 2

Show answers

Answers

Answer from: ayoismeisjuam

$t=\frac{3.05-0}{\frac{9.77}{\sqrt{32}}}=1.766$

$p_v =P(t_{(31)}1.766)=0.0436$

If we compare the p value and the significance level given $\alpha=0.05$ we see that p_v so we can conclude that we have enough evidence to reject the null hypothesis, so we can conclude that the true mean is higher than 0% at 5% of signficance.

The output for Minitab is on the figure attached.

The confidence bound is given as 0.12 represent the value asociated to the one tailed confidence interval calculated:

$\bar X -t_{\alpha/2} \frac{s}{\sqrt{n}}$

$3.05 -1.695 \frac{9.77}{\sqrt{32}}= 0.123$

So the minimum value that we expect for the return at 95% of confidence is 0.12 %

Explanation:

Data given and notation

$\bar X=3.05$ represent the sample mean in%

s=9.77 represent the sample standard deviation

n=32 sample size

$\mu_o =0$ represent the value that we want to test

$\alpha=0.05$ represent the significance level for the hypothesis test.

t would represent the statistic (variable of interest)

p_v represent the p value for the test (variable of interest)

State the null and alternative hypotheses.

We need to conduct a hypothesis in order to check if the mean for the YTD return for a large cap is positive, the system of hypothesis would be:

Null hypothesis: $\mu \leq 0$

Alternative hypothesis: $\mu 0$

If we analyze the size for the sample is > 30 but we don't know the population deviation so is better apply a t test to compare the actual mean to the reference value, and the statistic is given by:

$t=\frac{\bar X-\mu_o}{\frac{s}{\sqrt{n}}}$ (1)

t-test: "Is used to compare group means. Is one of the most common tests and is used to determine if the mean is (higher, less or not equal) to an specified value".

Calculate the statistic

We can replace in formula (1) the info given like this:

$t=\frac{3.05-0}{\frac{9.77}{\sqrt{32}}}=1.766$

P-value

The first step is calculate the degrees of freedom, on this case:

df=n-1=32-1=31

Since is a one side test the p value would be:

$p_v =P(t_{(31)}1.766)=0.0436$

Conclusion

The output for Minitab is on the figure attached.

The confidence bound is given as 0.12 represent the value asociated to the one tailed confidence interval calculated:

$\bar X -t_{\alpha/2} \frac{s}{\sqrt{n}}$

$3.05 -1.695 \frac{9.77}{\sqrt{32}}= 0.123$

So the minimum value that we expect for the return at 95% of confidence is 0.12 %

In a random sample of 32 large cap mutual funds, the average YTD return is 3.05% with a standard dev

Answer from: Quest

answer assertive;

Answer from: Quest

The correct answer is bridewealth;

Another question on Business

Business, 22.06.2019 05:50

Which is one solution to levy the complexity of the global matrix strategy with added customer-focused dimensions?

Answers: 3

Answer

Business, 22.06.2019 10:10

conquest, inc. produces a special kind of light-weight, recreational vehicle that has a unique design. it allows the company to follow a cost-plus pricing strategy. it has $9,000,000 of average assets, and the desired profit is a 10% return on assets. assume all products produced are sold. additional data are as follows: sales volume 1000 units per year; variable costs $1000 per unit; fixed costs $4,000,000 per year; using the cost-plus pricing approach, what should be the sales price per unit?

Answers: 2

Answer

Business, 22.06.2019 14:30

Amethod of allocating merchandise cost that assumes the first merchandise bought was the first merchandise sold is called the a. last-in, first-out method. b. first-in, first-out method. c. specific identification method. d. average cost method.

Answers: 3

Answer

Business, 22.06.2019 22:40

Problem 3: access control pokeygram, a cutting-edge new email start-up, is setting up building access for its employees. there are two types of employees: managers and engineers, and there are three departments: security, networking, and human resoures. each employee works in a single department, and each department is housed on a different floor. managers are allowed access to any floor, while engineers are allowed access only to their own floor. there are three badge-operated elevators, each going up to only one distinct floor. every employee has one badge. pokeygram wants to use the best possible access control method in order to minimize delay for the elevators (a) access control matrix, 1. which of the following would you recommend that pokeygram use: (b) access control lists, or (c) capabilities? make sure to justify your answer. 2. what, if any, would be the benefits (and/or disadvantages) of using rbac (role-based access control) in this situation? keep your solution for this problem limited to 10-12 lines of text.

Answers: 2

Answer

You know the right answer?

In a random sample of 32 large cap mutual funds, the average YTD return is 3.05% with a standard dev...

Questions