Colonial Funds claims to have a bond fund that has maintained a mean share price of $10.00. They claim that the variance of the share price is 0.18. To test this claim, the investor randomly selects 29 days during the last year. He finds an average share price of $9.80 with a standard deviation of 0.4006. Can the investor conclude that the share price of the bond fund varies from Colonial Funds claims at α=0.05? Step 1 of 5 : State of the hypotheses in terms of the standard deviation. Round the standard deviation to four decimal places when necessary Step 2 of 5 : Determine the critical value(s) of the test statistic. If the test is two-tailed, separate the values with a comma. Round your answer to three decimal places. Step 3 of 5 : Determine the value of the test statistic. Round your answer to three decimal places. Step 4 of 5 : Make the decision. Step 5 of 5 : What is the conclusion?
Colonial Funds claims to have a bond fund that has maintained a mean share price of $10.00. They claim that the variance of the share price is 0.18. To test this claim, the investor randomly selects 29 days during the last year. He finds an average share price of $9.80 with a standard deviation of 0.4006. Can the investor conclude that the share price of the bond fund varies from Colonial Funds claims at α=0.05?
Step 1 of 5 :
State of the hypotheses in terms of the standard deviation. Round the standard deviation to four decimal places when necessary
Step 2 of 5 :
Determine the critical value(s) of the test statistic. If the test is two-tailed, separate the values with a comma. Round your answer to three decimal places.
Step 3 of 5 :
Determine the value of the test statistic. Round your answer to three decimal places.
Step 4 of 5 :
Make the decision.
Step 5 of 5 :
What is the conclusion?
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