Show transcribed image text 4) Two investment managers are being considered by an investor who needs someone to look after her money. Manager B would be preferable, because his costs are less, but only if it clearly does not result in a reduced mean return on her investment. To test, the investor gives each manager 8 portfolio's to manage and records their investment return on each. The sample mean return for manager A was 5.7% with sample standard deviation 0.8%, while for manager B the sample mean return was 5.5% with sample standard deviation 0.6%. a) Should the investor not switch over to manager B? Test at a significance level of 5%. b) What is the (approx imate) p-value for the test?
4) Two investment managers are being considered by an investor who needs someone to look after her money. Manager B would be preferable, because his costs are less, but only if it clearly does not result in a reduced mean return on her investment. To test, the investor gives each manager 8 portfolio's to manage and records their investment return on each. The sample mean return for manager A was 5.7% with sample standard deviation 0.8%, while for manager B the sample mean return was 5.5% with sample standard deviation 0.6%. a) Should the investor not switch over to manager B? Test at a significance level of 5%. b) What is the (approx imate) p-value for the test?
