You don't need to be rich to buy a few shares in a mutual fund. The question is, how reliable are mutual funds as investments? This depends on the type of fund you buy. The following data are based on information taken from a mutual fund guide available in most libraries.
A random sample of percentage annual returns for mutual funds holding stocks in aggressive-growth small companies is shown below.
-1.5 | 14.4 | 41.4 | 17.4 | -16.5 | 4.4 | 32.6 | -7.3 | 16.2 | 2.8 | 34.3 |
-10.6 | 8.4 | -7.0 | -2.3 | -18.5 | 25.0 | -9.8 | -7.8 | -24.6 | 22.8 |
Use a calculator to verify that s2 ≈ 347.521 for the sample of aggressive-growth small company funds.
Another random sample of percentage annual returns for mutual funds holding value (i.e., market underpriced) stocks in large companies is shown below.
16.4 | 0.6 | 7.1 | -1.8 | -3.9 | 19.4 | -2.5 | 15.9 | 32.6 | 22.1 | 3.4 |
-0.5 | -8.3 | 25.8 | -4.1 | 14.6 | 6.5 | 18.0 | 21.0 | 0.2 | -1.6 |
Use a calculator to verify that s2 ≈ 137.630 for value stocks in large companies.
Test the claim that the population variance for mutual funds holding aggressive-growth in small companies is larger than the population variance for mutual funds holding value stocks in large companies. Use a 5% level of significance. How could your test conclusion relate to the question of reliability of returns for each type of mutual fund?
What are the degrees of freedom?
dfN | |
dfD |
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
- Asian economies impact some of the world's largest populations. The growth of an economy has a big influence on the everyday lives of ordinary people. Are Asian economies changing? A random sample of 15 Asian economies gave the following information about annual percentage growth rate. Region 1 2 3 4 5 6 7 8 Modern Growth Rate % 4.4 2.9 7.6 2.6 0.9 5.3 2.3 4.8 Historic Growth Rate 3.1 1.7 7.1 5.9 3.1 6.2 3.4 8.6 Region 9 10 11 12 13 14 15 Modern Growth Rate % 4.5 5.2 6.6 3.8 3.8 0.2 7.7 Historic Growth Rate 6.6 7.8 6.2 1.3 1.4 2.7 5.9 Does this information indicate a change (either way) in the growth rate of Asian economies? Use a 10% level of significance. (a) What is the level of significance? State the null and alternate hypotheses. Ho: Distributions are the same. H1: Distributions are different.Ho: Distributions are different. H1: Distributions are the same. Ho: Distributions are the same. H1: Distributions are the same.Ho: Distributions are different.…arrow_forwardThe boxplot below shows salaries for CPAS and Actuaries in a town. СРА Actuary 20 30 40 50 60 70 80 90 100 110 Salary (thousands of $) If a person is making the third quartile salary for a CPA, they are making less than % of Actuaries.arrow_forwardA firm wants to know if there is any difference in percentage of sport category watched based on age. The data for consumer preference can be found in the table below. What are the expected frequencies of each consumer entry? TV Viewers: % of Viewers, by Major Sport Category Item Ages 18-34 Ages 35+ eSports 50.6 86.3 Mixed Martial Arts 30 80.7 MLS 27.3 79.7 High School Football n/a 79.4 Minor League Hockey 24.6 78.8 Soccer (non-USA) 23.9 78.7 NBA 23.9 77.5 Running n/a 76.9 Minor League Baseball 21.7 76.7 NHL 20.1 73.9 NFL 20.1 70.5 NASCAR 19.3 n/a MLB 19.1 68.1 Tennis 18.7 68.5 College Basketball 18.2 n/a IndyCar 18 62.7 College Football 17.9 62.5 Golf 11.9 32arrow_forward
- Using this data, how would you find a 95% prediction interval for the number of programs in year 11?arrow_forwardWhat is the coefficient of the dummy variable? What is the meaning of the coefficient of the dummy variable?arrow_forwardYou don't need to be rich to buy a few shares in a mutual fund. The question is, how reliable are mutual funds as investments? This depends on the type of fund you buy. The following data are based on information taken from a mutual fund guide available in most libraries.A random sample of percentage annual returns for mutual funds holding stocks in aggressive-growth small companies is shown below. -1.5 14.4 41.3 17.4 -16.2 4.4 32.6 -7.3 16.2 2.8 34.3 -10.6 8.4 -7.0 -2.3 -18.5 25.0 -9.8 -7.8 -24.6 22.8 Use a calculator to verify that s2 ≈ 346.508 for the sample of aggressive-growth small company funds.Another random sample of percentage annual returns for mutual funds holding value (i.e., market underpriced) stocks in large companies is shown below. 16.1 0.9 7.4 -1.8 -3.8 19.4 -2.5 15.9 32.6 22.1 3.4 -0.5 -8.3 25.8 -4.1 14.6 6.5 18.0 21.0 0.2 -1.6 Use a calculator to verify that s2 ≈ 136.999 for value stocks in large companies.Test the claim that the population…arrow_forward
- I can't seem to figure this question out and need help please, thanks so much.arrow_forwardAsian economies impact some of the world's largest populations. The growth of an economy has a big influence on the everyday lives of ordinary people. Are Asian economies changing? A random sample of 15 Asian economies gave the following information about annual percentage growth rate. Region 1 2 3 4 5 6 7 8 Modern Growth Rate % 4.4 2.9 7.6 2.4 0.9 5.5 2.5 4.8 Historic Growth Rate 3.1 1.7 7.2 5.3 3.7 6.4 3.4 8.8 Region 9 10 11 12 13 14 15 Modern Growth Rate % 4.3 5.2 6.5 3.8 3.4 0.2 7.5 Historic Growth Rate 6.6 7.8 6.2 1.9 1.2 2.9 5.3 Does this information indicate a change (either way) in the growth rate of Asian economies? Use a 10% level of significance. Compute the sample test statistic. (Round your answer to two decimal places.) Find the P-value of the sample test statistic. (Round your answer to four decimal places.)arrow_forwardA realtor is displaying the histogram below, which summarizes the percentage appreciation in value (over the past five years) for each of a random sample of 25 houses in Newburg Park. Relative frequency 0.4 0.32 03- 0.2 0.2 0.2 016 0.12 0.1 10 20 40 Appreciation (in percent) Based on the histogram, draw the ogive (the ccumulative relative frequency polygon) for the sample data. Cumulative relative froquency 0.6 0.4 02 0.00 0.00 [0.00 T0.00 0.0 10 20 30 40 30 Appreciation (in percent)arrow_forward
- For large U.S. companies, what percentage of their total income comes from foreign sales? A random sample of technology companies (IBM, Hewlett-Packard, Intel, and others) gave the following information.† Technology companies, % foreign revenue: x1; n1 = 16 62.8 55.7 47.0 59.6 55.3 41.0 65.1 51.1 53.4 50.8 48.5 44.6 49.4 61.2 39.3 41.8 Another independent random sample of basic consumer product companies (Goodyear, Sarah Lee, H.J. Heinz, Toys 'R' Us) gave the following information. Basic consumer product companies,% foreign revenue: x2; n2 = 17 28.0 30.5 34.2 50.3 11.1 28.8 40.0 44.9 40.7 60.1 23.1 21.3 42.8 18.0 36.9 28.0 32.5 Assume that the distributions of percentage foreign revenue are mound-shaped and symmetric for these two company types. (a) Use a calculator with mean and standard deviation keys to calculate x1, s1, x2, and s2. (Round your answers to four decimal places.) x1 = % s1 = % x2 = % s2 = % (b) Let ?1 be the population mean…arrow_forwardLast school year, the student body of a local university consisted of 20% freshmen, 21% sophomores, 29% juniors, and 30% seniors. A random sample of 300 students taken from this year's student body showed the following number of students in each class. Freshmen 84 Sophomores 65 Juniors 86 Seniors 65 We are interested in determining whether there has been a significant change in the distribution of class between the last school year and this school year.If the distribution is the same as the previous year, the expected number of freshmen is _____. a. 84 b. 87 c. 60 d. 20arrow_forwardyour car is more crowded than you think. table 5.8 reports results from a 1969 personal transportation survey on "home-to-work" trips in metropolitan areas. The survey stated that the average car occupancy was 1.4 people. check that calculation.arrow_forward
- MATLAB: An Introduction with ApplicationsStatisticsISBN:9781119256830Author:Amos GilatPublisher:John Wiley & Sons IncProbability and Statistics for Engineering and th...StatisticsISBN:9781305251809Author:Jay L. DevorePublisher:Cengage LearningStatistics for The Behavioral Sciences (MindTap C...StatisticsISBN:9781305504912Author:Frederick J Gravetter, Larry B. WallnauPublisher:Cengage Learning
- Elementary Statistics: Picturing the World (7th E...StatisticsISBN:9780134683416Author:Ron Larson, Betsy FarberPublisher:PEARSONThe Basic Practice of StatisticsStatisticsISBN:9781319042578Author:David S. Moore, William I. Notz, Michael A. FlignerPublisher:W. H. FreemanIntroduction to the Practice of StatisticsStatisticsISBN:9781319013387Author:David S. Moore, George P. McCabe, Bruce A. CraigPublisher:W. H. Freeman