CALCULATE THIS:
Read the following case. Don’t forget to show all your work for each answer.
Automotive: The following table presents a portion of the annual returns for Fidelity’s Select Automotive Fund (in percent). This mutual fund invests primarily in companies engaged in the manufacturing, marketing, or the sales of automobiles, trucks, specialty vehicles, parts, tires, and related services.
Full Data File in Excel Format Preview the document
Year Automotive Fund
1987 6.54
1988 20.06
2013 46.67
Data File in Excel format for discussion
State the null and the alternative hypothesis in order to test whether the standard deviation is greater than 35%.
What assumption regarding the population is necessary to implement this step?
Calculate the value of the test statistics.
Find the p-value.
At a=0.05, what is your conclusion?
