|

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?

Expert Chegg Question Answer:

free chegg question answer
Smart Teacher From Answerie.com
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%

Given number of samples k-5 Each sample size n -10, Therefore, N = nk = 50 - 1& 4+10.6+7,1+5,9+2.2 1) Mean of the sample means x =-yi = 6 i-l 2) The variation between the samples Treatment sum of square =? ?(--) =?(5-3) -10[4-6)2+(10.6-9%(7.1-6745.9-6)2 +(24-6)2]-3934 3 The variati on within the samples Erro suM j square = 9[7.72 +6.82 +7.82 +8.22 +6.52)-248274 4) SS Total-SS Treatment+SS Error 393.4+2482.7 2876.14
ANOVA TableAlpha =0.05
Sum ofMean sum of
SourcedfSquaresSquareF-RatioF-critP-Value
Treatment4393.498.351.782607122.5787390.148980
Error452482.7455.172
Total492876.14

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



Free Chegg Question Answer

Leave a Reply

Your email address will not be published. Required fields are marked *