Answer Happy

Suppose a mutual fund qualities as having moderate risk if the standard deviation of its monthly rate of retum is less than 3%. A mutual fund rating agency randomly selects 24 months and determines the rate of return for a certain tund. The standard deviation of the rate of return computed to be 2.815. Is there sufficient evidence to conclude that the fund has moderate risk at the a-0.01 level of significance? A normal probability plot indicates that the monthly rates of returnare nomaly distributed What are the correct hypotheses for this test? The null hypothesis is Ho: The alternative hypothesis is Hy! Calculate the value of the test statistic. x2 (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 as needed.) What is the correct conclusion at the a = 0.01 level of significance? Since the P-value is than the level of significance, the null hypothesis. There sufficient evidence to conclude that the standard deviation has decreased at the 0.01 level of significance.