Unformatted text preview: at if?
“2:? , The Fidelity Overseas mutual fund consists of about equal
proportions of Japanese and European stocks. The
percentage of the fund invested in any individual country
varies according to prevailing rates of return on stocks in
different countries. At the end of October 1995, the fund
manager was considering the possibility of shifting the
proportions invested in French, Dutch, and Italian stocks. This
change would be made if it could be statistically substantiated
that differences in average annualized rates of return during
the period ending in October existed among stocks from the
three countries. Random samples of 50 French stocks, 32
Dutch stocks, and 28 Italian stocks were collected, and the
annualized rate of return for each stock over the period under
study was computed. Then an analysis of variance was
carried out, which produced the following results: SSE =
22,3998 and SST = 32,1561. Based on these results, should
the manager shift the proportions of the fund invested in the
three countries? How confident are you of your answer?
Construct a complete ANOVA table for this problem. ...
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 Fall '11
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