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Taking stock An investor with a stock portfolio worth several hundred thousand dollars
Chapter 9, Problem 76(choose chapter or problem)
Taking stock An investor with a stock portfolio worth several hundred thousand dollars sued his broker due to the low returns he got from the portfolio at a time when the stock market did well overall. The investors lawyer wants to compare the brokers performance against the market as a whole. He collects data on the brokers returns for a random sample of 36 weeks. Over the 10-year period that the broker has managed portfolios, stocks in the Standard & Poors 500 index gained an average of 0.95% per week. The Minitab output below displays the results of a significance test. One-Sample T: Return (percent) Test of mu = 0.95 vs < 0.95 Variable N Mean StDev SE Mean T P Return (percent) 36 1.441 4.810 0.802 2.98 0.003 (a) Do these data give convincing evidence to support the lawyers case? Justify your answer. (b) Interpret the P-value in context.
Questions & Answers
QUESTION:
Taking stock An investor with a stock portfolio worth several hundred thousand dollars sued his broker due to the low returns he got from the portfolio at a time when the stock market did well overall. The investors lawyer wants to compare the brokers performance against the market as a whole. He collects data on the brokers returns for a random sample of 36 weeks. Over the 10-year period that the broker has managed portfolios, stocks in the Standard & Poors 500 index gained an average of 0.95% per week. The Minitab output below displays the results of a significance test. One-Sample T: Return (percent) Test of mu = 0.95 vs < 0.95 Variable N Mean StDev SE Mean T P Return (percent) 36 1.441 4.810 0.802 2.98 0.003 (a) Do these data give convincing evidence to support the lawyers case? Justify your answer. (b) Interpret the P-value in context.
ANSWER:Step 1 of 5
(a)
Given:
