Nicholas Grammas is an investment analyst examining the performance of two mutual funds with Janus Capital...

Nicholas Grammas is an investment analyst examining the performance of two mutual funds with Janus Capital Group: The Janus Balanced Fund and the Janus Overseas Fund.The following table reports the annual returns (in percent) of these two funds over the past 10 years. We assume the sample returns are drwan independently from normally distributed populations.

In a report, use the above information to:

1. Describe the similarities and differences in these two funds’ returns that you can observe from their descriptive statistics.

2. What is the two-tailed p-value?

3. Determine whether the risk of one fund is different from the risk of the other fund at the 5% significance level. (Two Sentences: one stating your decision using the p-value approach, and another stating your conclusion.)

Year	Janus Balanced Fund	Janus Overseas Fund
2000	-2.16	-18.57
2001	-5.04	-23.11
2002	-6.56	-23.89
2003	13.74	36.79
2004	8.71	18.58
2005	7.75	32.39
2006	10.56	47.21
2007	10.15	27.76
2008	-15.22	-52.75
2009	24.28	78.12

Show all working out and reasoning, be specific and detailed please. Please do all working out in Excel only. Thank you. This is about Chi Squared Distribution:Statistical Inference Concerning Variance and F Distribution:Inference Concerning Ratio of Two Population Variances to give you an idea about what formulas I'm looking for. Thank you.

Solutions

Expert Solution

the p value of the test is 0.571 which is not less than 0.05 we fail to reject the null hypothesis and conclude the rest is different for the two funds.

orchestra answered 1 year ago

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