Question 768131
Assume that the population standard deviations are equal for income mutual funds and growth mutual funds. Use the following sample data to test whether there is a difference in the mean yields of the two funds at the 0.05 level of significance. 


Income Growth 
Sample Size 35 40 
Sample Mean 900 875 
Sampld Stndrd Dev 35 45 

1. WHat is the null Hypothesis
Ho: u1-u2 = 0
Ha: u1-u2 # 0
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2. WHat is the computed value of the test statistic t?
t = 2.7017
 

3. What is the p value for this test statistic
p = 0.0086 

4. What decision is made about the null hypothesis using a alpha = 0.05
Since the p-value is less than 5%, reject Ho at the 5% level of significance.
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Cheers,
Stan H.
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