9. Mutual funds mix different types of investments which alters performance. Use the tab titled BESTFUNDS1 to...

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9. Mutual funds mix different types of investments which altersperformance. Use the tab titledBESTFUNDS1 to determine if there is adifference between the one-year and three-year annualized returnfor the 20 mutual funds shown in the file. (a) Identify which typeof test is most appropriate for you to use, justify your answer.(b) Determine whether or not the mean return differs for the twoinvestment horizons (use α = .05). (c) Make sure to interpret theresults for real-world use (i.e., explain what the test allows youto conclude about the mutual funds). (3 points)

Mutual FundOne-Year returnThree-Year Return
MutualFund 12.44.5
MutualFund 22.53.5
MutualFund 37.47.4
MutualFund 415.95.3
MutualFund 57.019.2
MutualFund 618.214.3
MutualFund 718.026.7
MutualFund 85.222.8
MutualFund 917.29.6
MutualFund 1018.79.3
MutualFund 119.820.3
MutualFund 1217.727.6
MutualFund 1312.119.3
MutualFund 1411.221.6
MutualFund 154.08.0
MutualFund 1621.611.7
MutualFund 176.58.2
MutualFund 187.013.9
MutualFund 1910.410.8
MutualFund 204.117.6

Answer & Explanation Solved by verified expert
3.9 Ratings (713 Votes)
a We have two years data of returns and both the years aredependent or correlated to eachother therefore the data is pairedHence paired    See Answer
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