the following is another one-sample hypothesis test problem. Use Excel\'s Data A

Question

the following is another one-sample hypothesis test problem. Use Excel's Data Analysis to arrive at some of the statistics you will need to conduct the 5-step hypothesis test. Data Analysis will not give you the final test statistic but it can help you arrive at the test statistic. Give it a try and comment on others' attempts. I'll post a solution toward the end of the week or point you to someone's solution that is on track. Listed below is the rate of return for one year (reported in percent) for a sample of 12 mutual funds that are classified as taxable money market funds.

4.63, 4.15, 4.76, 4.70, 4.65, 4.52, 4.70, 5.06, 4.42, 4.51, 4.24, 4.52

Using the .05 significance level, is it reasonable to conclude that the mean rate of return is more than 4.50%?

Explanation / Answer

here we use t -test as

t=(x--mean)/(s/n1/2) with (n-1) df

so from the above formula we calcualte t=1.032

and critical value of t at (0.05,11)=2.2,

since calculate t-value is less than critical t so we donot accept the claim

so we conclude that the mean rate of return is not more than 4.50%

x=return 4.63 4.15 4.76 4.7 4.65 4.52 4.7 5.06 4.42 4.51 4.24 4.52 mean= 4.571667 s2= 0.057852 s= 0.240523 n= 12 x-= 4.5

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