Create confidence interval for difference in rate of return

Reference no: EM131427216

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?

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Reference no: EM131427216

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