Answer
The shape of the distribution is approximately normal. The center of the data is obtained as 3.050 returns. The spread of the data from its mean value is 2.992.
Shape of the distribution is negatively skewed. Center of the data is obtained as 3.40 returns. Spread of the data from its mean value is 5.59.
One would invest in Mutual fund A.
Work Step by Step
The shape, center, and spread of data can be determined by the descriptive statistics of data. Shape of data can be measured by mean, median,and mode. Center of data is the mean value of data. Spread of data can be determined by the sample standard deviation of data.
The descriptive statistics such as mean, median, mode, and standard deviation can be obtained by using the Minitab software.
Follow these steps to obtain descriptive statistics of the provided data:
Step 1: Enter the data in the Minitab worksheet.
Step 2: Go to Stat and select the basic statistics and then display descriptive statistics.
Step 3: Enter the variable “Mutual fund A” in the variables column.
Step 4: Chose the options mean, median, mode, and standard deviation.
Step 5: Click on Ok.
Therefore, mean, median, and standard deviation of the data set are 3.050, 3.050, and 2.992. Mode of the distribution cannot be determined because none of the values has the highest frequency.
Therefore, shape of the distribution is approximately symmetric as mean and median of the data are same. Center of the data is obtained as 3.050 returns and spread of the data from its mean value is 2.992.
The shape, center, and spread of data can be determined by the descriptive statistics of data. Shape of data can be measured by mean, median, and mode. The center of data is the mean value of data. Spread of data can be determined by the sample standard deviation of data.
The descriptive statistics such as mean, median, mode, and standard deviation can be obtained by using the Minitab software.
The following steps are followed to obtain the descriptive statistics of the provided data:
Step 1: Enter the data in the Minitab worksheet.
Step 2: Go to Stat and select the basic statistics and then display descriptive statistics.
Step 3: Enter the variable “Mutual fund B” in the variables column.
Step 4: Chose the options mean, median, mode, and standard deviation.
Step 5: Click on Ok.
Therefore, mean, median, mode,and standard deviation of the data set are 3.40, 3.65, 4.3, and 5.59.
.
Therefore, shape of the distribution is negatively skewed as mean is smaller than the median of the data. Center of the data is obtained as 3.40 returns. Spread of the data from its mean value is 5.59.
As the Mutual fund A is normal, the standard deviation is considered to choose the mutual fund in which one would invest. Mutual fund A has less standard deviation than Mutual fund B. So, Mutual fund A is chosen to
invest.
