Taking stock An investor with a stock portfolio worth several hundred thousand dollars sued his broker due to the low returns he got from the portfolio at a time when the stock market did well overall. The investorโs lawyer wants to compare the brokerโs performance against the market as a whole. He collects data on the brokerโs returns for a random sample ofweeks. Over the -year period that the broker has managed portfolios, stocks in the Standard & Poorโs index gained an average of per month. The Minitab output below displays descriptive statistics for these data, along
with the results of a significance test.
(a) Determine whether there are any outliers. Show your work.
(b) Interpret the P-value in context.
(c) Do these data give convincing evidence to support the lawyerโs case? Carry out a test to help you answer this question.
