The accompanying table shows annual return data from 2001 2009 for
The accompanying table shows annual return data from 2001–2009 for Vanguard’s Balanced Index and European Stock Index mutual funds. The data set, labeled Balanced_European, can also be found on the text website.
Assume that returns are normally distributed.


a. Set up the hypotheses to test whether the mean returns of the two funds differ.
b. What are the value of the test statistic and its associated p -value given unequal population standard deviations?
c. At the 5% significance level, what is theconclusion?
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