The data set below on the left represents the annual rate of return (in percent)

Question

The data set below on the left represents the annual rate of return (in percent) of eight randomly sampled bond mutual funds, and the data set below on the right represents the annual rate of return (in percent) of eight randomly sampled stock mutual funds. Use the information in the table below to complete pats (a) through (d). Then complete pat (e). (a) Determine the mean and standard deviation of each data set. The mean of the data set for bond mutual funds is 2.575. The standard deviation of the data set for bond mutual funds is 0.669. The mean of the data set for stock mutual funds is 8.213. The standard deviation of the data set for stock mutual funds is 0.903. (b) Based only on the standard deviation, stock mutual funds have more spread. (c) What proportion of the bond mutual funds are within one standard deviation of the mean?

Explanation / Answer

= 2.575, = 0.67

The range is [2.575 - 0.67, 2.575 + 0.67] = [1.905, 3.245]

Proportion = 5/8 = 0.625

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