Question

Colonial Funds claims to have a bond fund which has performed consistently throughout the past year....

Colonial Funds claims to have a bond fund which has performed consistently throughout the past year. The variance of the share price is claimed to be 0.170.17. To test this claim, an investor randomly selects 2121 days during the last year to check the performance of the fund. He finds an average share price of $19.80$⁢19.80 with a standard deviation of 0.23230.2323. Can the investor conclude that the variance of the share price of the bond fund is different than claimed at α=0.1α=0.1? Assume the population is normally distributed.

Step 2 of 5 :  

Determine the critical value(s) of the test statistic. If the test is two-tailed, separate the values with a comma. Round your answer to three decimal places.

Homework Answers

Answer #1

Hi Dear,
I have given my 100% to solve your problem.
So, please help me out by just thumbs up.
Thank you, so much

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Colonial Funds claims to have a bond fund which has performed consistently throughout the past year....
Colonial Funds claims to have a bond fund which has performed consistently throughout the past year. The variance of the share price is claimed to be 0.160.16. To test this claim, an investor randomly selects 2121 days during the last year to check the performance of the fund. He finds an average share price of $6.80$⁢6.80 with a standard deviation of 0.25360.2536. Can the investor conclude that the variance of the share price of the bond fund is less than...
Colonial Funds claims to have a bond fund which has performed consistently throughout the past year....
Colonial Funds claims to have a bond fund which has performed consistently throughout the past year. The variance of the share price is claimed to be 0.17 To test this claim, an investor randomly selects 24 days during the last year to check the performance of the fund. He finds an average share price of $15.80 with a standard deviation of 0.2113. Can the investor conclude that the variance of the share price of the bond fund is different than...
Colonial funds claims to have a bond fund which has maintained a mean share price of...
Colonial funds claims to have a bond fund which has maintained a mean share price of $15.00. They claim that the standard deviation of the share price is 0.24. To test this claim, the investor randomly selects 16 days during the last year. He finds an average share price of $14.80 with a standard deviation of 0.171. Can the investor conclude that the share price of the bond fund varies by less than colonial funds claims at a=0.025? Step 1...
An investor wants to invest his money in a fund which has maintained a steady value....
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 $7.00$⁢7.00 with a variance of 0.180.18. In order to find out if the fund manager's claim is true, the investor samples the prices from 2121 random days and finds a standard deviation of 0.25530.2553 in the price. Can the investor conclude that the variance of the share price...
An investor wants to invest his money in a fund which has maintained a steady value....
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 $7.00$⁢7.00 with a variance of 0.180.18. In order to find out if the fund manager's claim is true, the investor samples the prices from 2121 random days and finds a standard deviation of 0.25530.2553 in the price. Can the investor conclude that the variance of the share price...
In an annual report to investors, an investment firm claims that the share price of one...
In an annual report to investors, an investment firm claims that the share price of one of their bond funds had very little variability. The report shows the average price as $18.00 with a variance of 0.11. One of the investors wants to investigate this claim. He takes a random sample of the share prices for 10 days throughout the last year and finds that the standard deviation of the share price is 0.1448. Can the investor conclude that the...
In an annual report to investors, an investment firm claims that the share price of one...
In an annual report to investors, an investment firm claims that the share price of one of their bond funds had very little variability. The report shows the average price as $12.00 with a variance of 0.23. One of the investors wants to investigate this claim. He takes a random sample of the share prices for 22 days throughout the last year and finds that the standard deviation of the share price is 0.4789. Can the investor conclude that the...
In an annual report to investors, an investment firm claims that the share price of one of their bond funds had very little variability.
In an annual report to investors, an investment firm claims that the share price of one of their bond funds had very little variability. The report shows the average price as $⁢17.00 with a variance of 0.14. One of the investors wants to investigate this claim. He takes a random sample of the share prices for 23 days throughout the last year and finds that the standard deviation of the share price is 0.1037. Can the investor conclude that the...
In an annual report to investors, an investment firm claims that the share price of one...
In an annual report to investors, an investment firm claims that the share price of one of their bond funds had very little variability. The report shows the average price as $⁢17.00 with a variance of 0.11. One of the investors wants to investigate this claim. He takes a random sample of the share prices for 11 days throughout the last year and finds that the standard deviation of the share price is 0.1626. Can the investor conclude that the...