Purchase Solution

Testing of Hypothesis

Not what you're looking for?

Ask Custom Question

Mutual funds are classified as load or no-load funds. Load funds require an investor to pay an initial fee based on a percentage of the amount invested in the fund. The no-load funds do not require this initial fee. Some financial advisors argue that the load mutual funds may be worth the extra fee because these funds provide a higher mean rate of return than the no-load mutual funds. A sample of 30 load mutual funds and a sample of 30 no-load mutual funds were selected. Data were collected on the annual return for the funds over a five-year period. The data are contained in the data set Mutual. The data for the first five load and first five no-load mutual funds are as follows:

A. Formulate Ho and Ha such that rejection of Ho leads to the conclusion that the load mutual funds have a higher mean annual return over the five-year period.

B. Use the 60 mutual funds in the data set Mutual to conduct the hypothesis test. What is the p-value? At a=0.05 what is your conclusion?

Attachments
Purchase this Solution
Solution Summary

The solution describes a testing of hypothesis problem using Excel.

Purchase this Solution
Free BrainMass Quizzes
Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

View More Free Quizzes
Related BrainMass Solutions

  • Comparison of Hypothesis Testing and the Legal System

    515291 Comparison of Hypothesis Testing and the Legal System Please explain how hypothesis testing is related/compared to our legal system.

  • Hypothesis Testing

    The third step in hypothesis testing is to set the significance level (alpha). The fourth step in hypothesis testing is to compute the probability of the test statistic and the corresponding p-value.

  • Business Research and Hypothesis Testing

    This solution of 1,348 words explains the value of research and hypothesis testing to a company by using the examples of market research, product research, advertising research, statistical hypothesis, null hypothesis and alternative hypothesis.

  • Hypothesis testing

    89331 Hypothesis testing, Level of significance in hypothesis testing In hypothesis testing, how are verbal problem statements converted to numerical problem statements?

  • 5 Steps of Hypothesis Testing

    265308 5 Steps of Hypothesis Testing List the five steps of hypothesis testing and explain the procedure and logic of each. I have taken an example hypothesis testing problem to illustrate the five steps of hypothesis testing.

  • General Process of Hypothesis Testing for Stats Students

    501749 General Process of Hypothesis Testing in Statistics What is hypothesis testing? Explain the general process and the steps included in conducting a hypothesis test?

  • Steps in Hypothesis Testing

    459558 Hypothesis Testing: What is the general process that one should follow in conducting a hypothesis test? Explain the notion of hypothesis testing. What is the general process that one should follow in conducting a hypothesis test?

  • Hypothesis testing: Double negative logic, five step process

    (2) What is the five-step process for hypothesis testing? Is the order important? Why or why not? (1) Explain the double-negative logic of hypothesis testing (e.g.: a scientist fails to reject the null hypothesis).

  • Hypothesis vs. Theory

    2) Why is it important to test a hypothesis? Give the rationale. Can we conduct research without hypothesis testing? Can you think of an example in an organization where research was conducted using hypothesis testing?

  • Hypothesis testing: Hypothesis by Professor Brainstorm

    In the formal language of hypothesis testing, it is the null hypothesis that is true, not Brainstorm's hypothesis. (The professor interpreted his results at the 5 percent level).

View More Related Solutions