Test whether mean returns of the two funds differ

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Question: The accompanying table shows annual return data from 2001- 2009 for Vanguard's Balanced Index and European Stock Index mutual funds. The data can also be accessed from the text website, labeled Vanguard Balanced and European Funds.

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a. Set up the hypotheses to test whether mean returns of the two funds differ.

b. What is the value of the test statistic and its associated p -value given unequal population standard deviations?

c. At the 5% significance level, what is the conclusion?

Reference no: EM131807329

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