HWK 15 - Homework # 15 Problems: #21 Business Issue...

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Homework # 15 Problems: Exercise 21 (p 471). BFDA and F-Test Use FDIST to calculate the p-va #21 Business Issue The risk of large cap growth and small cap growth mutual funds Business Question Is the Small Cap Growth Fund Riskier than the Large Cap Growth Fund. Data Fidelity Small Cap = Sample 1 Fidelity Magellan = Sample 2 n1= 26 n1= 26 s1 = 13.03% s1 = 8.89% S1^2 = 0.02 S1^2 = 0.01 Analysis: Hypotheses Ho: Ha: Var1 > Var 2 Test Stat Test Statistic: F = s1^2/s2^2. If Ho is true, this will be F distributed with df1and2 = 25 Sig Level Alpha = .05 Reject Rule Reject Ho If F > (FINV: .95, 25, 25) F > 0.51 Calculations S1^2 = 0.02 S2 ^2 = 0.01 F = 2.15 P-value = 0.03 Conclusion: Reject Ho Business Answer According to the samples of 26 taken of the two mutual funds there is sufficent evidence to conclude that the small cap mutal funds are riskier than the large cap. Exercises 2 & 3 (p524) Var1 Var 2
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# 2 and 3 Business Question Is there a difference in the population means of the randomized design
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HWK 15 - Homework # 15 Problems: #21 Business Issue...

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