A financial planner wants to compare the yield of income- and growth-oriented mutual funds. Fifty thousand dollars is invested in each of a sample of 35 income-oriented and 40 growth-oriented funds. The mean increase for a two-year period for the income funds is $1100. For the growth? oriented funds the mean increase is $1090.

 

At the 0.01 significance level is there a difference in the mean yield of the two funds? Assume that s₁ = $45 and s₂ = $55. State your work in the 5-step hypothesis test.

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Step 1 State the null hypothesis and the alternative hypothesis Null Hypothesis H0 There is no diffe... View the full answer