1. An investor would like to know if their stock portfolio average CAGR (compoun
ID: 3319401 • Letter: 1
Question
1. An investor would like to know if their stock portfolio average CAGR (compound annual growth rate) is different from 10%. From a sample of 30 periods, the average CAGR was 12.2% with standard deviation of s=9%. Calculate the 95% confidence interval. Perform the appropriate one-sample test with results.
Based on the one-sample t test, conclude that the average CAGR is significantly different from 10%.
Based on the one-sample Z test, conclude that the average CAGR is NOT significantly different from 10%.
Based on the one-sample Z test, conclude that the average CAGR is significantly different from 10%.
Based on the one-sample t test, conclude that the average CAGR is NOT significantly different from 10%.
2. A non-profit organization specializing in providing assistance domestic violence victims would like to conduct a study to identify what factors such as age or availability of suitable housing (yes or no) can overall physical health (measured as a quantitative number). What would be the suitable statistical analysis?
a. Chi-square test
b. Linear Regression
c. Paired t-test
a.Based on the one-sample t test, conclude that the average CAGR is significantly different from 10%.
b.Based on the one-sample Z test, conclude that the average CAGR is NOT significantly different from 10%.
c.Based on the one-sample Z test, conclude that the average CAGR is significantly different from 10%.
d.Based on the one-sample t test, conclude that the average CAGR is NOT significantly different from 10%.
Explanation / Answer
1. The statistical software output for this problem is:
One sample T summary hypothesis test:
: Mean of population
H0 : = 10
HA : 10
Hypothesis test results:
Since p - value is greater than 0.05, we do not reject Ho.
Hence,
Option D is correct.
2. Option B is correct.
Mean Sample Mean Std. Err. DF T-Stat P-value 12.2 1.6431677 29 1.3388774 0.191Related Questions
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