The average annual total return for U.S. Diversified Equity mutual funds from 1999 to 2003 was 4.1%
Question:
a. Formulate the hypotheses that can be used to determine whether the mean annual return for mid-cap growth funds differ from the mean for U.S. Diversified Equity funds.
b. A sample of 40 mid-cap growth funds provides a mean return of = 3.4%. Assume the population standard deviation for mid-cap growth funds is known from previous studies to be σ = 2%. Use the sample results to compute the test statistic and p-value for the hypothesis test.
c. At α = .05, what is your conclusion? Mutual Funds
Mutual funds are like a pool of funds gathered by different small investors that have simalar investment perspective about returns on their investments. These funds are managed by professional investment managers who act smartly on behalf of the...
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Related Book For
Statistics For Business And Economics
ISBN: 9780538481649
11th Edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams
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