An investor wants to invest his money in a fund which has maintained a steady va

Question

An investor wants to invest his money in a fund which has maintained a steady value. A fund manager claims that one of his bond funds has maintained an average price of $17.00 with a variance of 0.22. In order to find out if the fund manager's claim is true, the investor samples the prices from 10 random days and finds a standard deviation of 0.1713 in the price. Can the investor conclude that the variance of the share price of the bond fund is different than claimed at = 0.05? Assume the population is normally distributed.

Step 3 of 5 : Determine the value of the test statistic. Round your answer to three decimal places.

PLEASE CLEARLY HIGHLIGHT THE FINAL ANSWER (THE TEST STATISTIC!!

Explanation / Answer

2 = 0.22

s = 0.1713

n = 10

Test statistic = (n - 1) * s2 / 2 = 9 * 0.17132 / 0.22 = 1.200 (ans)

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