True or false the standard deviation for fund p is less than...

Name: true or false the standard deviation for fund p is less than 20
Uploaded: 2024-08-14T12:53:06-08:00
Duration: 1 min
Channel: Aparna Shakti
Description: true or false the standard deviation for fund p is less than 20

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Investors commonly use the standard deviation of the monthly percentage return for a mutual fund as a measure of the risk for the fund. In such cases, a fund that has a larger standard deviation is considered more risky than a fund with a lower standard deviation. The standard deviation for the American Century Equity Growth fund and the standard deviation for the Fidelity Growth Discovery fund were reported to be 14.9% and 19.1%, respectively. Assume that each of these standard deviations is based on a sample of 60 months of returns. Do the sample results support the conclusion that the Fidelity fund has a larger population variance than the American Century fund? Which fund is more risky? Let the Fidelity fund be represented by population 1. State the null and alternative versions of the research hypothesis that the Fidelity fund has a larger population variance than the American Century fund. Calculate the value of the test statistic (to 2 decimals). The p-value is At a 0.05 level of significance, what is your conclusion? that the Fidelity fund has greater variance than the American Century fund.

David N.

The average variance for large cap stock mutual funds is 0.0256. The sample standard deviation based on a sample of size 20 for the Vanguard PRIMECAP mutual fund is 0.23. For testing the hypothesis to determine whether the variance for the Vanguard fund is different from the average variance for large cap mutual funds: H0: σ^2 = 0.0256 HA: σ^2 ≠ 0.0256 We want to use the p-value and calculated test of statistics: χ^2 calculation = 39.262 What will be the p-value? A. 0.01 < p-value < 0.02 B. p-value < 0.01 C. 0.005 < p-value < 0.01 D. p-value < 0.005

Adi S.