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 (a) Determine the mean and standard deviation of each data set. 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 parts (a) The mean of the data set for bond mutual funds is through (d). Then complete part (e) (Type an integer or decimal rounded to three decimal places as needed.) Bond mutual funds 3.3 1.9 2.0 3.5 2.5 2.8 1.7 21 Stock mutual funds 9.5 7.7 9.2 7.5 8.5 7.3 8.2 7.0 The standard deviation of the data set for bond mutual funds is . (Type an integer or decimal rounded to three decimal places as needed.) The mean of the data set for stock mutual funds is (Type an integer or decimal rounded to three decimal places as needed.) The standard deviation of the data set for stock mutual funds is (Type an integer or decimal rounded to three decimal places as needed.) (b) Based only on the standard deviation, (c) What proportion of the bond mutual funds are within one standard deviation of the mean? V have more spread. (Type an integer or decimal rounded to three decimal places as needed.) What proportion of the stock mutual funds are within one standard deviation of the mean? (Type an integer or decimal rounded to three decimal places as needed.) (d) The coefficient of variation, CV, is defined as the ratio of the standard deviation to the mean of a data set

Explanation / Answer

Standard deviation of bond mutual fund=0.626

      Mean of stock fund=8.113

Standard deviation of stock fund=0.845

Based on standard deviation Stock have more spread

Required propotion=5/8=0.625

There are 5 observation out of 8 in this interval

There are 5 observation out of 8 in this interval

Required propotion=5/8=0.625

Coefficient of variation of stock=10.413

Based on standard deviation bond have more spread

(second part)

right choice is A. coefficeint of variation is best used................

bond stock 1.7 7 1.9 7.3 2 7.5 2.1 7.7 2.5 8.2 2.8 8.5 3.3 9.2 3.5 9.5 mean= 2.475 8.113 standard deivation 0.626 0.845 coefficient of variation 25.293 10.413

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