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Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly...

Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 4%. A mutual-fund rating agency randomly selects 24 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 2.99%. Is there sufficient evidence to conclude that the fund has moderate risk at the a = 0.01 level of significance? A normal probability plot indicates that the monthly rates of return are normally distributed.

What are the correct hypotheses for this test?

Calculate the value of the test statistic

Determine the P-value for the test statistic

What is the correct conclusion at the a = 0.01 level of significance?

math   Statistics-And-Probability   
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Answer #1

Univen sample Stan dan dan ahon?2.93%EO02gge. : 6- population standand-down a hon ? y 0.04 hat hus hasmoderate usk Hy pothesis H Population staodard deuiatian is equal to sample Standand dodiation H Popuaton Standand daviatian is not equal to soumple Standazd dlawi ahon ntext statistic is 6 2 2 3 O.00 16 12.5 As

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