Homework # 11 Problem # 40 on Page 443 Business Issue Rate of Return on Load or No-Load Mutual Funds Business Question "Do 'Load' mutual funds have a higher mean annual return over this 5 year period than 'No Load" funds?" Data A sample of 30 load 30 no load mutal funds Load No Load N1= 30 30 x1 = Err:509 Err:509 s1 = Err:509 Err:509 Analysis 1) Ho: t-Test: Two-Sample Assuming Unequal Variances Ha: Mu Load > Mu No Load Return Return Mean 16.23 15.7 2) Test Stat: Variance 12.39 10.99 t = ((x-barA-x-barB) - 0)/(sA2/nA + sB2/nB)^.5 Observatio 30 30 if Ho is true (uA = uB) and is t distributed Hypothesiz0 with Df we can calculate df 58 t Stat 0.59 3) Alpha = .05 P(T<=t) on 0.28 t Critical on 1.67 4) Reject Ho if T > Tinv ( .1 , 58)= 1.67 P(T<=t) two 0.56 t Critical tw 2 5) T = 0.59 DF = 58 P-Value = Tdist (.59, 58, 1 ) = 0.28 6) Do Not Reject Ho Business Answer According to the samples taken of Load and No Load Mutual Funds
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This note was uploaded on 03/31/2011 for the course STATS 211 taught by Professor Dunne during the Spring '07 term at University of Dayton.