One risky and one prudent, two investment startegies are compared. 7 of the funds following the...

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One risky and one prudent, two investment startegies arecompared. 7 of the funds following the first strategy have averagereturn of 15% with standard deviation of 12%. 15 of the funds thatfollow the second strategy have an average return of 12% withstandard deviation of 9%. What are the calculated and critical teststatistics and the test result? (alpha=5%, consider one sided testthat one of the varances is higher)

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mean1 15 015mean2    See Answer
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