In: Statistics and Probability
Given the accompanying sample data on expense ratio (%) for large-cap growth mutual funds:
A normal probability plot shows a reasonably linear pattern.
Is there compelling evidence for concluding that the population mean expense ratio exceeds 1%? Carry out a test of the relevant hypotheses using a significance level of 0.01.
Solution
Since multiple parts are given, the first part is answered in detail. Kindly repost for more help.
The test is a right-tailed test.
Since the population standard deviation is not known, t-distribution will be used.
Sincet 2.42 ≤ tc = 2.539 , the null hypothesis is not rejected .
Conclusion : There is not enough evidence to claim that the population mean is greater