3. Use only calc. Scientific method ... please answer questions total ... ty Sup

Question

3. Use only calc. Scientific method ... please answer questions total ... ty

Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 5%.A mutual-fund rating agency randomly selects 25months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 3.38%. Is there sufficient evidence to conclude that the fund has moderate risk at the =0.05 level of significance? A normal probability plot indicates that the monthly rates of return are normally distributed. What are the correct hypotheses for this test?

The null hypothesis is H0:(1)______________(2__________)(3)____________ The alternative hypothesis is H1:(4)___________(5)______________(6)_____________

Calculate the value of the test statistic. 2=___________(Round to three decimal places as needed.) Use technology to determine the P-value for the test statistic.

The P-value is _________ .(Round to three decimal places )

What is the correct conclusion at the =0.05level of significance? Since the P-value is(7)___________than the level of significance,(8)_____________the null hypothesis. There(9)_____________sufficient evidence to conclude that the fund has moderate risk at the 0.05 level of significance.

(1)p//

(2)equals=/greater than>/less than</not equals

(3)0.0338/.0.05.

(4)/p/

(5)less than/not equals/greater than>/equals=

(6)0.0338/.0.05.

(7)greater/less

(8)do not reject/reject

(9)is/is not

Explanation / Answer

Since the claim is that the standard deviation is less than 0.05

The null hypothesis would be:

1)

2) =

3) 0.05

.

H1: The alternate hypothesis states the claim as follows:

4)

5) <

6) 0.05

The formula of chi square is

Chi square = (n-1) * s^2 / ^2

Chi square = ((25-1) * (0.0338)^2 / (0.05)^2

Chi square = 10.96742

..

The P value for it is : df = 24 , chi square = 1.96742, P value = 0.01076

.

The P value is less than 0.05

Thus answer to

7) less

8) reject

9) is

.

Thus when the p vlaue 0.010758 < significance level 0.05 , we reject the null hypothesis , and consider that there is sufficient evidence to support the claim that the standard deviation is less than 0.05

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