# Project #10280 - Statistics

```Using Microsoft ExcelThe October 7, 1991 issue of Fortune Magazine reported on the rapid rise of
fees and expenses charged by mutual funds. Assuming that stock fund expenses and
municipal bond fund expenses are each approximately normally distributed,
suppose a random sample of 12 stock funds gives a mean annual expense of 1.63
percent with a standard deviation of .31 percent, and an independent random
sample of 12 municipal bond funds gives a mean annual expense of 0.89 percent
with a standard deviation of .23 percent. Let m1 be the mean annual expense of
stock funds and m2 be the mean annual expense for municipal bond funds.

Do parts A, B, and C by using the equal variances procedure. Then repeat A, B,
and C using the unequal variances procedure. Compare results.

A. Set up null and alternative hypotheses needed to attempt to establish that
the mean annual expense for stock funds is larger than the mean annual expense
for municipal funds. Test these hypotheses at the .05 level of significance.
What do you conclude?

B. Set up null and alternative hypotheses needed to attempt to establish that
the mean annual expense for stock funds exceeds the mean annual expense for
municipal bond funds by more than .5 percent. Test at .05 level significance.
What do you conclude?

C. Calculate 95 percent confidence interval for the difference between the mean annual expenses for stock funds and municipal bond funds. Can we be 95 percent
confident that the mean annual expense for stock funds exceeds that for
municipal bond funds by more than .5 percent? Explain```

 Subject Mathematics Due By (Pacific Time) 08/04/2013 12:00 am
TutorRating
pallavi

Chat Now!

out of 1971 reviews
amosmm

Chat Now!

out of 766 reviews
PhyzKyd

Chat Now!

out of 1164 reviews
rajdeep77

Chat Now!

out of 721 reviews
sctys

Chat Now!

out of 1600 reviews

Chat Now!

out of 770 reviews
topnotcher

Chat Now!

out of 766 reviews
XXXIAO

Chat Now!

out of 680 reviews