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.

Solutions

Expert Solution

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 ≤ t_c = 2.539 , the null hypothesis is not rejected .

Conclusion : There is not enough evidence to claim that the population mean is greater

SUN BUNRA answered 2 years ago

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