A Researcher Analyzes the Returns for Two Mutual Funds,Smith,Inc

question 22

Essay

A researcher analyzes the returns for two mutual funds,Smith,Inc.and Campbell,Inc.in order to determine which of the two has a higher risk rate.She assumes that the returns are normally distributed.Implement the critical value approach at a significance level of 10%.The sample descriptive measures are given below.
Smith,Inc. = 28.46%;s₁ = 36.32%;n₁ = 12
Campbell,Inc. = 9.84%;s₂ = 12.43%;n₂ = 12

---

Definitions:

Interest Collected

The amount of interest payments received by a lender from a borrower over a specified period of time.

Percent of Receivables Method

A method used in accounting to estimate bad debts expense based on a percentage of accounts receivable judged to be uncollectible.

Unadjusted Trial Balance

A financial report that shows the balances of all accounts, including assets, liabilities, equity, income, and expenses before any adjustments are made for the accounting period.

Bad Debts Expense

An expense reported on the income statement reflecting the cost of accounts receivable that a company does not expect to collect.