Discuss the below:
Probahility & Sampling Distribution: Mutual Funds
Q1) BusinessWeek published information on 283 equity mutual funds (BusinessWeek, January 26, 2004). A sample of 40 of those funds is contained in the data set MutualFund. Use the data set to response the following questions.
a. Develop a point estimate of the proportion of the BusinessWeek equity funds that are load funds.
b. Develop a point estimate of the proportion of funds that are classified as high risk.
c. Develop a point estimate of the proportion of funds that have a below-average risk rating. (Excel File attached)
Q2) The price of a particular brand of jeans has a mean of $37.99 and a standard deviation of $7. A sample of 49 pairs of jeans is selected.
Use Excel to answer the following questions.
a.What is the probability that the sample of jeans will have a mean price less than $40?
b.What is the probability that the sample of jeans will have a mean price between $38 and $39?
c.What is the probability that the sample of jeans will have a mean price within $3 of the population mean?
FUND |
Load/No Load |
Risk Level |
AIM Opportunities II A |
Load |
Average |
Alpine U.S. Real Est. Equity Y |
No load |
Average |
Am. Century Value Inv. |
No load |
Low |
Atalanta/Sosnoff |
No load |
Average |
Bjurman Micro Cap Growth |
No load |
Average |
Brazos Micro Cap Y |
No load |
High |
Bruce |
No load |
Low |
CNI Charter RCB Small Cap. Value |
Load |
Low |
Clipper |
No load |
Very low |
Columbia Acorn Z |
No load |
Low |
Delaware Emerging Markets A |
Load |
Average |
Dreyfus Premier Emerging Mkts A |
Load |
Average |
Eaton Vance Emerging Mkts A |
Load |
Average |
Evergreen Precious Metals Hlds. A |
Load |
High |
Exeter Tax Managed A |
No load |
Low |
Federated Capital Appreciation A |
Load |
Average |
First Eagle Overseas A |
Load |
Very low |
Fremont U.S. Micro Cap |
No load |
High |
Goddman Sachs Small Cap Value |
Load |
Low |
Growth Fund of America A |
Load |
Average |
Hotchkis & Wiley Mid Cap Value I |
Load |
Low |
Icon Energy |
No load |
Average |
Invesco Energy Inv. |
No load |
Average |
Janus Advisor Growth & Income I |
No load |
Average |
Mutual Discovery Z |
No load |
Very low |
Nuveen NWQ Multi Cap Value R |
No load |
Low |
Oppenheimer Developing Markets A |
Load |
Average |
Phoenix-Duff & Phelps Real Est. Sec. A |
Load |
Very low |
T. Rowe Price Capital Appreciation |
No load |
Very low |
Prudent Bear |
No load |
High |
RS Global Natural Resources |
No load |
Low |
Security Mid Cap Value A |
Load |
Low |
Smith Barney Security & Growth A |
Load |
Very low |
Strong Large Company Growth Inv. |
No load |
Average |
TCW Galileo Opportunity N |
Load |
Low |
Thompson Plumb Balanced |
No load |
Low |
Touchstone Emerging Growth A |
Load |
Average |
U.S. Global Accolade Eastern European |
No load |
Average |
USAA Precious Metals & Minerals |
No load |
High |
Van Eck International Investors Gold A |
Load |
High |