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Case Study 7.5.2 compared the volatility of Global Rock Funds’ return on investments to that of the bench-mark Lipper fund. But can it be said that the returns them-selves beat the benchmark? The table below gives the annual returns of the GlobalRock Fund for the years 1989 to 2007 and the corresponding Lipper averages. Test the hypothesis that
Investment Return %Investment Return % | |||||
Year | Global Rock, x | Lipper Avg., y | Year | Global Rock, x | Lipper Avg., y |
1989 | 15.32 | 14.76 | 1999 | 27.43 | 34.44 |
1990 | 1.62 | -1.91 | 2000 | 8.57 | 1.13 |
1991 | 28.43 | 20.67 | 2001 | 1.88 | -3.24 |
1992 | 11.91 | 6.18 | 2002 | -7.96 | -8.11 |
1993 | 20.71 | 22.97 | 2003 | 35.98 | 32.57 |
1994 | -2.15 | -2.44 | 2004 | 14.27 | 15.37 |
1995 | 23.29 | 20.26 | 2005 | 10.33 | 11.25 |
1996 | 15.96 | 14.79 | 2006 | 15.94 | 12.70 |
1997 | 11.12 | 14.27 | 2007 | 16.71 | 9.65 |
1998 | 0.37 | 6.25 |
Note that
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An Introduction to Mathematical Statistics and Its Applications (6th Edition)
- ch 11 end. 7: In a bumper test, three test vehicles of each of three types of autos were crashed into a barrier at 5 mph, and the resulting damage was estimated. Crashes were from three angles: head-on, slanted, and rear-end. The results are shown below. Research questions: Is the mean repair cost affected by crash type and/or vehicle type? Are the observed effects (if any) large enough to be of practical importance (as opposed to statistical significance)?arrow_forwardA research group is interested in the relationship between exposure to mold in households after a major hurricane and the onset of acute respiratory illness in children. Suppose an observational study is conducted over 10 years following the natural disaster and the following two-by-two table was created in order to address the relationship between exposure and outcome. Acute Respiratory Illness No Acute Respiratory Illness Total Mold 378 156 534 No Mold 73 260 333 Total 451 416 867 Calculate the incidence of acute respiratory illness in the exposed and unexposed. Calculate the relative risk for ARI due to exposure in this study Interpret your findings from part Barrow_forwardWinter visitors are extremely important to the economy of Southwest Florida. Hotel occupancy is an often-reported measure of visitor volume and visitor activity (naples daily news, March 22, 2012). Hotel occupancy data for February in two consecutive years are as follows.OccupancyCurrent YearPrevious YearOccupied Rooms 1470 1458Total Rooms 1750 1800a. Formulate the hypothesis test that can be used to determine if there has been an increase in the proportion of rooms occupied over the one-year period.b. What is the estimated proportion of hotel rooms occupied each year?c. Using a .05 level of significance, what is your hypothesis test conclusion? What is the p-value?d. What is the 95% confidence interval estimate of the change in occupancy for the one-year period? Do you think area officials would be pleased with the result?arrow_forward
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