Question: is there is a significant difference between the average 3-year rate of return on Large Value and Large Growth stock funds. t-Test: Two-Sample Assuming Unequal
is there is a significant difference between the average 3-year rate of return on Large Value and Large Growth stock funds.
| t-Test: Two-Sample Assuming Unequal Variances | ||
| Large Growth | Large Value | |
| Mean | 21.04311 | 17.07818 |
| Variance | 63.45386 | 12.93765 |
| Observations | 103 | 55 |
| Hypothesized Mean Difference | 0 | |
| df | 153 | |
| t Stat | 4.297313 | |
| P(T<=t) one-tail | 1.53E-05 | |
| t Critical one-tail | 1.654874 | |
| P(T<=t) two-tail | 3.06E-05 | |
| t Critical two-tail | 1.97559 |
- Write a null and alternative hypothesis statement for the appropriate hypothesis test.
- At the 95% significance level, is there significant evidence of a difference between fund rate of returns for Large Value stock funds and Large Growth stock funds? Conduct a t-test to solve the problem. Be sure to include if you are rejecting or not rejecting the null hypothesis.
Based upon your results above, would be appropriate to explain the results to a senior executive that isn't as familiar with statistics as you are! Explain why senior executives would want to know these results.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
