Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 6%. A mutual fund rating agency randomly selects 21 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 4.05%. is there sufficient evidence to conclude that the fund has moderate risk at the a=0.05 level of significance? A normal probability plot indicates that the monthly rate of return are normally distributed. What are the correct hypotheses?
THe null hypotheses H_o is mean, SD, or P and equal, not equal, greater than or less than. 0.0405 or 0.06
the alternative hypotheses H_1 mean, SD, or P equal, not equal, greater than or less than. 0.405 or 0.06
Calculate the test statistic x^2 Determine the P Value the P Value is ____ round to three decimal places.
what is the correct conclusion at the a=0.05 level of significance?
Since the P Value is (greater or less) than the level of significance (reject, or not reject) null hypothesis.
There is or is not sufficient evidence to conclude that the fund has moderate risk at the 0.05 level of significance.