document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=334296>Question 334296</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 3.	A financial planner wants to compare the yield of income and growth oriented mutual funds. Fifty thousand dollars is invested in each of a sample of 35 income-oriented and 40 growth-oriented funds.  The mean increase for a two year period for the income funds is $1,100 with a standard deviation of $45.  For the growth-oriented funds the mean increase is $1,090 with a standard deviation of $55.  At the 0.01 significance level is there a difference in the mean yield of the two funds?\r<BR>\n" );
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document.write( "Hint:  Test of two population means based upon two large samples.\r<BR>\n" );
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document.write( "Test statistic:<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #239571 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=239571\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\">  A financial planner wants to compare the yield of income and growth oriented mutual funds. Fifty thousand dollars is invested in each of a sample of 35 income-oriented and 40 growth-oriented funds. The mean increase for a two year period for the income funds is $1,100 with a standard deviation of $45. For the growth-oriented funds the mean increase is $1,090 with a standard deviation of $55. At the 0.01 significance level is there a difference in the mean yield of the two funds? <BR>\n" );
document.write( "Hint: Test of two population means based upon two large samples.<BR>\n" );
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document.write( "I ran a 2-Sample Ttest on a TI calculator and got the following:<BR>\n" );
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document.write( "Ho: u1-u2 = 0<BR>\n" );
document.write( "Ha: u1-u2 is not equal to 0<BR>\n" );
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document.write( "Test statistic: t = 0.8655<BR>\n" );
document.write( "p-value: 0.3896<BR>\n" );
document.write( "df=72.6950<BR>\n" );
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document.write( "Since the p-value is greater than 1%, fail to reject Ho.<BR>\n" );
document.write( "The yield's are statistically equal at the 1% significance level.<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.\r<BR>\n" );
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