Question

In: Statistics and Probability

One risky and one prudent, two investment startegies are compared. 7 of the funds following the...

One risky and one prudent, two investment startegies are compared. 7 of the funds following the first strategy have average return of 15% with standard deviation of 12%. 15 of the funds that follow the second strategy have an average return of 12% with standard deviation of 9%. What are the calculated and critical test statistics and the test result? (alpha=5%, consider one sided test that one of the varances is higher)

Solutions

Expert Solution

mean1 = 15% = 0.15

mean2 = 12% = 0.12

SD1 = 12% = 0.12

SD2 = 9% = 0.09

test to check if they are equal :

(please UPVOTE)


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