Conduct a hypothesis test to determine whether the small cap growth fund is

# Conduct a hypothesis test to determine whether the

• 2

This preview shows page 1 - 2 out of 2 pages.

as a measure of risk. Conduct a hypothesis test to determine whether the small cap growth fund is riskier than the large cap growth fund. Use α = .05 as the level of significance. -Consider the Small cap fund as population 1 and the large cap fund as population 2. -Degrees of freedom 25 and 25; Upper-tail p-value is the area to the right of the test statistic.; From the F table, the p-value is between .025 and .05 ; Exact p-value corresponding to F = 2.15 is .0306 -p-value ≤ .05, reject H0. The population variance and standard deviation for the small cap growth fund are larger. Financial analysts would say the small cap growth fund is riskier. 3.) The filling variance for boxes of cereal is designed to be 0.02 or less. A sample of 41 boxes of cereal shows a sample standard deviation of 0.16 ounces. Use α = .05 to determine whether the variance in the cereal box fillings is exceeding the design specification.
Ch. 10 (2.) The National Association of Home Builders provided data on the cost of the most popular home remodeling projects. Sample data on cost in thousands of dollars for two types if remodeling projects are as follows. Kitchen : 25.2, 17.4, 22.8, 21.9, 19.7, 23, 19.7, 16.9, 21.8, 23.6 Master Bedroom : 18, 22.9, 26.4, 24.8, 26.9, 17.8, 24.6, 21 a. Compute the sample mean and sample standard deviation for each type of project. b. Develop a point estimate of the difference between the population mean remodeling costs for the two types of projects. c. Develop a 90% confidence interval for the difference between the two population means.

#### You've reached the end of your free preview.

Want to read both pages?

• Summer '18
• David Grimmett

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes