Mutual funds
In March 2002, Consumer Reports listed the rate of return for several large-cap mutual funds over the previous 3-year and 5-year periods. ( Large cap refers to companies worth over $10 billion.)
a) Create a 95% confidence interval for the difference in rate of return for the 3- and 5-year periods covered by these data. Clearly explain what your interval means.
b) It s common for advertisements to carry the disclaimer Past returns may not be indicative of future performance, but do these data indicate that there was an association between 3-year and 5-year rates of return?
