A Financial Planner Wants to Compare the Yield of Income

question 10

Essay

A financial planner wants to compare the yield of income and growth mutual funds. Fifty thousand dollars is invested in each of a sample of 35 income and 40 growth funds. The mean increase for a two-year period for the income funds is $900. For the growth funds, the mean increase is $875. Income funds have a sample standard deviation of $35; growth funds have a sample standard deviation of $45. Assume that the population standard deviations are equal.
At the 0.05 significance level, is there a difference in the mean yields of the two funds?
What is the computed value of the test statistic?

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