A financial analyst examines the performance of two mutual funds and claims that the variances of the annual returns for the bond funds differ. To support his claim, he collects data on the annual returns (in percent) for the years 2001 through 2010. The analyst assumes that the annual returns for the two emerging market bond funds are normally distributed. Use the following summary statistics. The competing hypotheses are Η₀: / = 1, Η_A: / ≠ 1, At α = 0.10, is the analyst's claim supported by the data? A) No, the p-value α = 0.10. C) No, the p-value α = 0.10. D) Yes, the p-value

Question

A financial analyst examines the performance of two mutual funds and claims that the variances of the annual returns for the bond funds differ. To support his claim, he collects data on the annual returns (in percent) for the years 2001 through 2010. The analyst assumes that the annual returns for the two emerging market bond funds are normally distributed. Use the following summary statistics. The competing hypotheses are Η₀: / = 1, Η_A: / ≠ 1, At α = 0.10, is the analyst's claim supported by the data? A) No, the p-value < α = 0.10. B) Yes, the p-value > α = 0.10. C) No, the p-value > α = 0.10. D) Yes, the p-value < α = 0.10.

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The Answer of A financial analyst examines the performance of two mutual funds and claims that the variances of the annual returns for the bond funds differ. To support his claim, he collects data on the annual returns (in percent) for the years 2001 through 2010. The analyst assumes that the annual returns for the two emerging market bond funds are normally distributed. Use the following summary statistics. The competing hypotheses are Η₀: / = 1, Η_A: / ≠ 1, At α = 0.10, is the analyst's claim supported by the data? A) No, the p-value < α = 0.10. B) Yes, the p-value > α = 0.10. C) No, the p-value > α = 0.10. D) Yes, the p-value < α = 0.10.

A Financial Analyst Examines the Performance of Two Mutual Funds