Colonial Funds claims to have a bond fund which has maintained a mean share price of $18.00. They claim that the standard deviation of the share price is 0.2. To test this claim, the investor randomly selects 17 days during the last year. He finds an average share price of $17.80 with a standard deviation of 0.1274. Can the investor conclude that the share price of the bond fund varies from Colonial Funds claims at α=0.01
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Step 1 of 5 :
State the hypotheses in terms of the standard deviation. Round the standard deviation to four decimal places when necessar
Colonial Funds claims to have a bond fund which has maintained a mean share price of...
An investor wants to invest his money in a fund which has maintained a steady value. A fund manager claims that one of his bond funds has maintained an average price of $11.00 with a variance of 0.25. In order to find out if the fund manager's claim is true, the investor samples the prices from 23 random days and finds a standard deviation of 0.4935 in the price. Can the investor conclude that the variance of the share price...
In an annual report to investors, an investment firm claims that the share price of one of their bond funds had very little variability. The report shows the average price as $$12.00 with a variance of 0.22. One of the investors wants to investigate this claim. He takes a random sample of the share prices for 25 days throughout the last year and finds that the standard deviation of the share price is 0.1616. Can the investor conclude that the...
00:57:14 Question1- of 9 Step 4 of 5 An investor wants to invest his money in a fund which has maintained a steady value. A fund manager claims that one of his bond funds has maintained an e of $7,00 with a variance of 0.2. in order to find out if the fund manager's claim is true, the investor samples the prices he investor conclude that the variance of the share price of the from 13 random days and finds...
Hypothesis Testing Example 7: Steps in Hypothesis Testing: A manufacturer claims that the thickness of the spearmint gum it produces is 7.5 one- hundredths of an inch. A quality control specialist regularly checks this claim. On one production run, he took a random sample of n= 10 pieces of gum and measured their thickness. The quality control specialist's hypotheses are: HO: 1. Step 1: State Hypotheses 2. Step 2: Select alpha, Draw Picture, Label Critical Values and Rejection Region(s) 3....