Fortune magazine reported on the rapid rise of fees and expenses, assignment help

User Generated

afhcnaqn

Mathematics

Description

An article in Fortune magazine reported on the rapid rise of fees and expenses charged by mutual funds. Assuming that stock fund expenses and municipal bond fund expenses are each approximately normally distributed, suppose a random sample of 12 stock funds gives a mean annual expense of 1.60 percent with a standard deviation of 0.33 percent, and an independent random sample of 12 municipal bond funds gives a mean annual expense of 0.88 percent with a standard deviation of 0.20 percent. Let µ1 be the mean annual expense for stock funds, and let µ2 be the mean annual expense for municipal bond funds. Do parts ab, and c by using the equal variances procedure.

a)  Set up the null and alternative hypotheses needed to attempt to establish that the mean annual expense for stock funds is larger than the mean annual expense for municipal bond funds. Test these hypotheses at the 0.10 level of significance.(Round yoursp2answer to 4 decimal places andt-value to 3 decimal places.)

b)  Set up the null and alternative hypotheses needed to attempt to establish that the mean annual expense for stock funds exceeds the mean annual expense for municipal bond funds by more than 0.5 percent. Test these hypotheses at the 0.10 level of significance.(Round yourt-value to 3 decimal placesand other answers to 1 decimal place.)


User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Please find attached, review and revert. It was nice working with you looking forward for more assignments. Thanks and goodbye

1

Null and Alternative Hypotheses
Null and Alternative Hypotheses
Name of Student
Institution
Name of Professor
Date

2

Null and Alternative Hypotheses
a). Setting up the null and alternative hypotheses needed to attempt to establish that the mean
annual expense for stock funds is larger than the mean annual expense for municip...


Anonymous
I was having a hard time with this subject, and this was a great help.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags