Using the data in the attached Excel file (MutualFundReturns.xlsx), please deter
ID: 3171800 • Letter: U
Question
Using the data in the attached Excel file (MutualFundReturns.xlsx), please determine whether there’s a relationship between type of investment and return. Please include all you work in your submission. (You may need to open Excel before you open the attached file).
Remember to add your name to both the file name and the worksheet itself.
Is there a relationship between type of investment and return?
Investment Return Tech -13% to - 20% Pacific Rim -2% to -12% S&P500 +5% to +10% S&P500 -13% to - 20% Tech -2% to -12% S&P500 +5% to +10% S&P500 +5% to +10% Pacific Rim +5% to +10% S&P500 +5% to +10% Tech -13% to - 20% Tech -1% to +4% Pacific Rim -1% to +4% S&P500 -1% to +4% S&P500 -1% to +4% Tech -1% to +4% Tech -13% to - 20% Tech -13% to - 20% Pacific Rim -2% to -12% Pacific Rim +5% to +10% S&P500 -13% to - 20% Tech -2% to -12% S&P500 +5% to +10% S&P500 +5% to +10% S&P500 -13% to - 20% Pacific Rim -13% to - 20% S&P500 -2% to -12% Tech +5% to +10% Pacific Rim -2% to -12% Tech -13% to - 20% S&P500 +5% to +10% Tech +5% to +10% Pacific Rim -2% to -12% Pacific Rim -13% to - 20% Pacific Rim +5% to +10% Tech -13% to - 20% Tech -13% to - 20% S&P500 +5% to +10% Pacific Rim -2% to -12% Tech -13% to - 20% Tech +5% to +10% Pacific Rim -13% to - 20% Pacific Rim -2% to -12% Pacific Rim +5% to +10% Pacific Rim +5% to +10% Tech -1% to +4% Tech -1% to +4% S&P500 -1% to +4% Pacific Rim -1% to +4% Tech -1% to +4% Pacific Rim -1% to +4% S&P500 -2% to -12% Tech +5% to +10% Pacific Rim -1% to +4% Pacific Rim -1% to +4% Pacific Rim -2% to -12% S&P500 +5% to +10% Tech +5% to +10% Pacific Rim -1% to +4% S&P500 -1% to +4% Tech -1% to +4% S&P500 +5% to +10% S&P500 -2% to -12% S&P500 +5% to +10% S&P500 -13% to - 20% Pacific Rim -13% to - 20% S&P500 -2% to -12% Tech -13% to - 20% Pacific Rim -2% to -12% Tech +5% to +10% S&P500 -13% to - 20% S&P500 -1% to +4% Tech -1% to +4% Tech -13% to - 20% Pacific Rim -13% to - 20% S&P500 -2% to -12% S&P500 -13% to - 20% Pacific Rim -13% to - 20% S&P500 +5% to +10% Tech -13% to - 20% Tech -2% to -12% Tech -1% to +4% Pacific Rim -1% to +4% S&P500 -1% to +4% S&P500 -1% to +4% Pacific Rim -1% to +4%Explanation / Answer
Result:
Using the data in the attached Excel file (MutualFundReturns.xlsx), please determine whether there’s a relationship between type of investment and return. Please include all you work in your submission. (You may need to open Excel before you open the attached file).
Remember to add your name to both the file name and the worksheet itself.
Two-Way Table
Count of Investment
Return
Investment
+5% to +10%
-1% to +4%
-13% to - 20%
-2% to -12%
Grand Total
Pacific Rim
5
8
6
8
27
S&P500
12
7
6
5
30
Tech
6
8
11
3
28
Grand Total
23
23
23
16
85
Ho: There is no relationship between type of investment and return
Ho: There is relationship between type of investment and return
Chi-Square Test
Observed Frequencies
Column variable
Calculations
Row variable
+5% to +10%
-1% to +4%
-13% to - 20%
-2% to -12%
Total
fo-fe
Pacific Rim
5
8
6
8
27
-2.3059
0.6941
-1.3059
2.9176
S&P500
12
7
6
5
30
3.8824
-1.1176
-2.1176
-0.6471
Tech
6
8
11
3
28
-1.5765
0.4235
3.4235
-2.2706
Total
23
23
23
16
85
Expected Frequencies
Column variable
Row variable
+5% to +10%
-1% to +4%
-13% to - 20%
-2% to -12%
Total
(fo-fe)^2/fe
Pacific Rim
7.3059
7.3059
7.3059
5.0824
27
0.7278
0.0659
0.2334
1.6749
S&P500
8.1176
8.1176
8.1176
5.6471
30
1.8568
0.1539
0.5524
0.0741
Tech
7.5765
7.5765
7.5765
5.2706
28
0.3280
0.0237
1.5470
0.9782
Total
23
23
23
16
85
Data
Level of Significance
0.05
Number of Rows
3
Number of Columns
4
Degrees of Freedom
6
Results
Critical Value
12.592
Chi-Square Test Statistic
8.2162
p-Value
0.2227
Do not reject the null hypothesis
Calculated chi square = 8.2162 < 12.592 the critical chi square at 5% level.
Ho is not rejected.
We conclude that there is no relationship between type of investment and return.
Two-Way Table
Count of Investment
Return
Investment
+5% to +10%
-1% to +4%
-13% to - 20%
-2% to -12%
Grand Total
Pacific Rim
5
8
6
8
27
S&P500
12
7
6
5
30
Tech
6
8
11
3
28
Grand Total
23
23
23
16
85
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