Rates of return on 24 mutual funds are shown. (a) Convert the data to ranks. Check the
Question:
(a) Convert the data to ranks. Check the column sums.
(b) Calculate Spearman's rank correlation coefficient. Show your calculations.
(c) At α = .01 can you reject the hypothesis of zero rank correlation?
(d) Check your work by using MegaStat.
(e) Calculate the Pearson correlation coefficient (using Excel).
(f) In this case, why might either test be used?
Transcribed Image Text:
Rates of Return on 24 Selected Mutual Funds (percent) Fund 12-Mo. 5-Year Fund 12-Mo. 5-Year 11.2 -2.4 8.6 3.4 3.9 10.3 16.1 6.7 6.5 11.1 8.0 11.2 10.5 5.0 8.6 3.7 -2.9 9.6 14.1 6.2 7.4 14.0 7.3 14.2 13 14 14.0 11.6 13.2 9.7 14.7 11.8 2.3 10.5 9.0 3.0 4 16 17 18 19 20 6.2 21.1 8.7 9.7 0.4 0.9 12.7 10.2 9.3 6.0 10.0 10 23 24
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a Table of Ranks Fund 12Mo 5Yr Rank 12Mo Rank 5Yr 1 112 105 7 6 2 24 50 24 20 3 86 86 13 14 ...View the full answer
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Related Book For
Applied Statistics In Business And Economics
ISBN: 9780073521480
4th Edition
Authors: David Doane, Lori Seward
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