The average standard deviation for the annual return of large cap stock mutual funds is 18.2% (The

Question:

The average standard deviation for the annual return of large cap stock is 18.2% (The Top AAII, 2004). The sample standard deviation based on a sample of size 36 for the Vanguard PRIMECAP mutual fund is 22.2%. Construct a hypothesis test that can be used to determine whether the standard deviation for the Vanguard fund is greater than the average standard deviation for large cap With a .05 level of significance, 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...