A financial planner desires to compare yield of income- and growth-oriented mutual funds. $50,000 is invested in each of sample of 35 income-oriented and 40 growth-oriented funds. The mean raise for a two-year period for income funds is $1100 with standard deviation of $45. For the growth oriented funds the mean increase is $1090 with standard deviation of $55. At the 0.01 significance level is there a difference in mean yield of the two funds?
a. State the null and alternate hypotheses.
H0:
H1:
b. Find the critical value:
c. Compute the value of the test statistic.
d. What is your decision regarding the null hypothesis?