Problem 9
Investing: Mutual Funds You dont need to be rich to buy a few shares in a mutual fund. The question is, how reliable are mutual funds as investments? This depends on the type of fund you buy. The following data are based on information taken from Morningstar, a mutual fund guide available in most libraries. A random sample of percentage annual returns for mutual funds holding stocks in aggressive-growth small companies is shown below. 1.8 14.3 41.5 17.2 16.8 4.4 32.6 7.3 16.2 2.8 34.3 10.6 8.4 7.0 2.3 18.5 25.0 9.8 7.8 24.6 22.8 Use a calculator to verify that s 2 348.43 for the sample of aggressive-growth small company funds. Another random sample of percentage annual returns for mutual funds holding value (i.e., market underpriced) stocks in large companies is shown below. 16.2 0.3 7.8 1.6 3.8 19.4 2.5 15.9 32.6 22.1 3.4 0.5 8.3 25.8 4.1 14.6 6.5 18.0 21.0 0.2 1.6 622 Use a calculator to verify that s 2 137.31 for value stocks in large companies. Test the claim that the population variance for mutual funds holding aggressive-growth small stocks is larger than the population variance for mutual funds holding value stocks in large companies. Use a 5% level of significance. How could your test conclusion relate to the question of reliability of returns for each type of mutual fund?

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Statistics 200 Week One Notes Writing in red are examples of ways to remember what terms go together and what the terms mean. Writing in green are examples of the terms. Chapter One and Two Terms Statistics: The science of learning from data Quantitative Data: Data that is numerical (Quantity = Numbers) Qualitative Date: Data that is categorical (Quality = Category) Inferential Statistics: Methods of drawing conclusions about a population based on information from a sample of the population (Infer = Draw Conclusions) The Six W’s: Who, What, When, Where, Why, and How o Who: Describes the thing that is surveyed o What: Describes the specific characteristics of the who that are measure

Since the solution to 9 from 11.4 chapter was answered, more than 242 students have viewed the full step-by-step answer. The full step-by-step solution to problem: 9 from chapter: 11.4 was answered by , our top Statistics solution expert on 01/04/18, 09:09PM. The answer to “Investing: Mutual Funds You dont need to be rich to buy a few shares in a mutual fund. The question is, how reliable are mutual funds as investments? This depends on the type of fund you buy. The following data are based on information taken from Morningstar, a mutual fund guide available in most libraries. A random sample of percentage annual returns for mutual funds holding stocks in aggressive-growth small companies is shown below. 1.8 14.3 41.5 17.2 16.8 4.4 32.6 7.3 16.2 2.8 34.3 10.6 8.4 7.0 2.3 18.5 25.0 9.8 7.8 24.6 22.8 Use a calculator to verify that s 2 348.43 for the sample of aggressive-growth small company funds. Another random sample of percentage annual returns for mutual funds holding value (i.e., market underpriced) stocks in large companies is shown below. 16.2 0.3 7.8 1.6 3.8 19.4 2.5 15.9 32.6 22.1 3.4 0.5 8.3 25.8 4.1 14.6 6.5 18.0 21.0 0.2 1.6 622 Use a calculator to verify that s 2 137.31 for value stocks in large companies. Test the claim that the population variance for mutual funds holding aggressive-growth small stocks is larger than the population variance for mutual funds holding value stocks in large companies. Use a 5% level of significance. How could your test conclusion relate to the question of reliability of returns for each type of mutual fund?” is broken down into a number of easy to follow steps, and 225 words. This full solution covers the following key subjects: . This expansive textbook survival guide covers 57 chapters, and 994 solutions. This textbook survival guide was created for the textbook: Understandable Statistics, edition: 9. Understandable Statistics was written by and is associated to the ISBN: 9780618949922.