# Question: You invest your life’s savings in 5 different hedge fund companies, each of which invests your money in 10 different in-house funds. You realize that this type of investing is risky, but you want the maximum long-term growth rate. After one year, the results are as listed in the table. Are the hedge fund companies equally good, or are there statistically significant differences between them?

Transcribed text From Image:You invest your life's savings in 5 different hedge fund companies, each of which invests your money in 10 different in-house funds. You realize that this type of investing is risky, but you want the maximum long-term growth rate. After one year, the results are as listed in the table. Are the hedge fund companies equally good, or are there statistically significant differences between them?

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## Expert Chegg Question Answer:

Answer:

## Answer

H0: There is no significance difference among the 5 companies

H1: There is significance difference among the 5 companies

Let the los be alpha = 5%

ANOVA Table | Alpha = | 0.05 | ||||

Sum of | Mean sum of | |||||

Source | df | Squares | Square | F-Ratio | F-crit | P-Value |

Treatment | 4 | 393.4 | 98.35 | 1.78260712 | 2.578739 | 0.148980 |

Error | 45 | 2482.74 | 55.172 | |||

Total | 49 | 2876.14 |

Here P-value 0.148 which is > alpha 0.05, So we accept H0

Thus we conclude that There is no significance difference among the 5 companies