The following table shows the annual returns for two of Vanguard's mutual funds: the Vanguard Energy Fund and the Vanguard Healthcare Fund. a. Calculate and interpret the sample correlation...

1 answer below »

The following table shows the annual returns for two of Vanguard's mutual funds: the Vanguard Energy Fund and the Vanguard Healthcare Fund.

a. Calculate and interpret the sample correlation coefficient r_xy.

b. Specify the competing hypotheses in order to determine whether the population correlation coefficient is significantly different from zero.

c. At the 5% significance level, what is the conclusion to the test? Are the returns on the mutual funds significantly correlated?

Answered Same DayDec 25, 2021

Answer To: The following table shows the annual returns for two of Vanguard's mutual funds: the Vanguard...

David answered on Dec 25 2021

131 Votes

Let X denote number of correct in n = 10 independent questions, where each has
a probability p = 0.25
We denote this by:
X ∼ Binomial(n = 10, p = 0.25)
Probability of x number of correct is:
P (X = x) =
(
n
x
)
px(1 − p)(n−x)
where
(
n
x
)
is combinatorial expression:(
n
x
)
=...

SOLUTION.PDF

Sun	Mon	Tue	Wed	Thu	Fri	Sat
30	31	1	2	3	4	5
6	7	8	9	10	11	12
13	14	15	16	17	18	19
20	21	22	23	24	25	26
27	28	29	30	1	2	3

The following table shows the annual returns for two of Vanguard's mutual funds: the Vanguard Energy Fund and the Vanguard Healthcare Fund. a. Calculate and interpret the sample correlation...

Answer To: The following table shows the annual returns for two of Vanguard's mutual funds: the Vanguard...

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment