A Financial Analyst Examines the Performance of Two Mutual Funds

question 3

Multiple Choice

A financial analyst examines the performance of two mutual funds and claims that the variances of the annual returns for the bond funds differ.To support his claim,he collects data on the annual returns (in percent) for the years 2001 through 2010.The analyst assumes that the annual returns for the two emerging market bond funds are normally distributed.Use the following summary statistics. The competing hypotheses are At α = 0.10,is the analyst's claim supported by the data?

• A) No,the p-value < α = 0.10.
• B) Yes,the p-value > α = 0.10.
• C) No,the p-value > α = 0.10.
• D) Yes,the p-value < α = 0.10.

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Definitions:

Consumer-Directed

A model or approach that allows consumers to make decisions about the goods or services they receive, often seen in healthcare or marketing.

Health Plans

Insurance policies or arrangements that provide coverage for medical expenses to individuals or groups.

Pension Program

A retirement plan offered by an employer that provides a regular income to employees after they retire.

Paid Vacation

A period of time, often legally mandated, during which an employee is allowed to be away from work while still receiving pay.