Question
In: Statistics and Probability
Automotive: The following table presents a portion of the annual returns for Fidelity's Select Automotive Fund...
Automotive: The following table presents a portion of the annual returns for Fidelity's Select Automotive Fund (in percent). This mutual fund invests primarily in companies engaged in the manufacturing, marketing, or the sales of automobiles, trucks, specialty vehicles, parts, tires, and related services.
| Year | Automotive Fund | |
| 1987 | 6.54 | |
| 1988 | 20.06 | |
| 1989 | 4.1 | |
| 1990 | -6.72 | |
| 1991 | 37.33 | |
| 1992 | 41.61 | |
| 1993 | 35.38 | |
| 1994 | -12.75 | |
| 1995 | 13.43 | |
| 1996 | 16.07 | |
| 1997 | 16.78 | |
| 1998 | 4.94 | |
| 1999 | -13.47 | |
| 2000 | -7.24 | |
| 2001 | 22.82 | |
| 2002 | -6.48 | |
| 2003 | 43.53 | |
| 2004 | 7.11 | |
| 2005 | -1.75 | |
| 2006 | 13.33 | |
| 2007 | 0.01 | |
| 2008 | -61.2 | |
| 2009 | 122.28 | |
| 2010 | 46.18 | |
| 2011 | -26.16 | |
| 2012 | 26.17 | |
| 2013 | 46.67 | |
1.State the null and the alternative hypothesis in order to test whether the standard deviation is greater than 35%.
2.What assumption regarding the population is necessary to implement this step?
3. Calculate the value of the test statistics.
4. Find the p-value.
5.At a=0.05, what is your conclusion?
Solutions
orchestra answered 1 year agoRelated Solutions
The following table shows a portion of the monthly returns data (in percent) for 2010–2016 for...
The following table shows a portion of the monthly returns data
(in percent) for 2010–2016 for two of Vanguard’s mutual funds: the
Vanguard Energy Fund and the Vanguard Healthcare Fund. [You may
find it useful to reference the t table.]
Date
Energy
Healthcare
Jan-10
-4.89
-0.11
Feb-10
1.6
0.54
Mar-10
2.27
1.37
Apr-10
2.99
-3.84
May-10
-11.6
-5.16
Jun-10
-5.77
-0.52
Jul-10
8.69
1.52
Aug-10
-6.02
-1.08
Sep-10
10.2
8.24
Oct-10
3.85
2.3
Nov-10
2.82
-2.5
Dec-10
5.55
2
Jan-16...
The following table shows a portion of the monthly returns data (in percent) for 2010–2016 for...
The following table shows a portion of the monthly returns data
(in percent) for 2010–2016 for two of Vanguard’s mutual funds: the
Vanguard Energy Fund and the Vanguard Healthcare Fund. [You may
find it useful to reference the t table.] Date Energy Healthcare
Jan-10 −4.86 −0.08 Feb-10 1.90 0.56 ⋮ ⋮ ⋮ Dec-16 0.10 −5.30 SOURCE:
www.finance.yahoo.com. Click here for the Excel Data File a.
Calculate the sample correlation coefficient rxy. (Round
intermediate calculations to at least 4 decimal places...
The table below gives the annual total returns on Global Balanced Index Fund from 1999 to...
The table below gives the annual total returns on Global
Balanced Index Fund from 1999 to 2008. The returns are in the local
currency. Use the information in this table to answer the following
questions:
Table 1: Global Balanced Index Fund Total Returns,
1999-2008
Year
Return
1999
50.21%
2000
-2.18%
2001
12.04%
2002
26.87%
2003
49.90%
2004
24.32%
2005
45.20%
2006
-5.53%
2007
-13.75%
2008
-39.06%
a. Calculate the mean absolute deviation (MAD).
Calculation of MAD for Germany Index Total...
The table below gives the annual total returns on Global Balanced Index Fund from 1999 to...
The table below gives the annual total returns on Global
Balanced Index Fund from 1999 to 2008. The returns are in the local
currency. Use the information in this table to answer the following
questions:
Table 1: Global Balanced Index Fund Total Returns,
1999-2008
Year
Return
1999
50.21%
2000
-2.18%
2001
12.04%
2002
26.87%
2003
49.90%
2004
24.32%
2005
45.20%
2006
-5.53%
2007
-13.75%
2008
-39.06%
(5.0 pts) Calculate the mean absolute deviation (MAD).
Calculation of MAD for Germany Index...
(Covering concepts for Chapter 3 and 8) The following attached file presents the annual returns for...
(Covering concepts for Chapter 3 and 8)
The following attached file presents the annual returns for two
mutual funds offered by the investment giant Fidelity. The Fidelity
Select Automotive Fund invests primarily in companies engaged in
the manufacturing, marketing, or sales of automobiles, trucks,
specialty vehicles, parts, tires and related services. The Fidelity
Gold Fund invests primarily in companies engaged in exploration,
mining, processing, or dealing in gold and, to a lesser degree, in
other precious metals and minerals.
In...
The annual returns from a particular mutual fund are believed to be normally distributed. The following...
The annual returns from a particular mutual fund are believed to
be normally distributed. The following table lists the annual
returns for this fund over a 20-year period.
Year
Return (%)
Year
Return (%)
1
6.2
11
5.4
2
11.3
12
26.0
3
16.1
13
13.5
4
16.9
14
24.2
5
9.8
15
–1.5
6
18.3
16
1.4
7
11.2
17
15.7
8
–12.1
18
11.8
9
19.2
19
1.9
10
17.6
20
17.8
a) Determine the mean and standard...
The following table presents forecasted returns for three companies under various potential states of the economy:...
The following table presents forecasted returns for three
companies under various potential states of the economy:
State
Probability
Stock X
Stock Y
Stock Z
Above Average
10%
38.4%
28.0%
43.8%
Average
45%
15.1%
9.0%
12.0%
Below Average
30%
-2.0%
-4.0%
-7.0%
Recession
15%
-12.1%
-6.0%
-15.7%
Weight
55%
30%
15%
What is the expected return on a portfolio of these three
companies constructed according to the weights given in the table?
(Report answer in percentage terms and round to 2...
The following table presents forecasted returns for three companies under various potential states of the economy:...
The following table presents forecasted returns for three
companies under various potential states of the economy:
State
Probability
Stock X
Stock Y
Stock Z
Above Average
10%
38.3%
27.1%
43.2%
Average
45%
16.7%
5.5%
12.0%
Below Average
30%
-2.5%
-4.0%
-7.0%
Recession
15%
-10.9%
-6.0%
-15.6%
Weight
55%
30%
15%
What is the standard deviation on a portfolio of these three
companies constructed according to the weights given in the table?
(Report answer in percentage terms and round to 2...
The following table shows the annual returns (in percent) and summary measures for a sample of...
The following table shows the annual returns (in percent) and
summary measures for a sample of returns from the Vanguard Energy
Fund and the Vanguard Health Care Fund from 2012 through 2016.
Year
Energy (%)
Health Care (%)
2012
44.6
15.41
2013
19.68
10.87
2014
37
10.43
2015
-42.87
-18.45
2016
28.36
20.96
If the risk-free rate is 3%, using mean-variance analysis, which
fund performed better, and why?
a.
The Energy Fund performed better, because its Sharpe Ratio was
higher....
Consider the following table for the total annual returns for a given period of time. Series...
Consider the following table for the total annual returns for a
given period of time. Series Average return Standard Deviation
Large-company stocks 11.7 % 20.6 % Small-company stocks 16.4 33.0
Long-term corporate bonds 5.6 9.1 Long-term government bonds 6.1
9.4 Intermediate-term government bonds 5.6 5.7 U.S. Treasury bills
3.8 3.1 Inflation 3.1 4.2 What range of returns would you expect to
see 68 percent of the time for long-term corporate bonds? (A
negative answer should be indicated by a minus...
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