Question

Value stocks are commonly viewed as steady, or conservative. Because you are saving toward your retirement, if you invest in a Value fund, you hope that the fund remains conservative. We would call such a fund "consistent The funds in this data set have been identified as either being "style consistent or "style drifter." Out of a sample of 146 funds, 67 were identified as style consistent, while 79 were identified as style drifters. Their statistics for their average return over 5 years are shown below. Complete parts a through c Maximum 5-yr Return 16.393 17.281 Q3 Mean StDev Minimum Q1 9.374 2.059 1.593 8.458 3.255-0.483 6.784 11.447 Consistent 67 79 Drifter a) Test whether there is a significant difference in a 5-year return for these two types of funds. Write the null and alternative hypotheses. Let group C correspond to style consistent funds and group D correspond to style drifter funds. Choose the correct answer below. b) Find the 95% confidence interval of the positive difference in mean return between style consistent and style drifter funds. The 95% confidence interval is (Π ) Round to three decimal places as needed)

Answer 1

CT 77