The frequency distribution in Table 13 represents the five-year rate of return of a random sample of

Question:

The frequency distribution in Table 13 represents the five-year rate of return of a random sample of 40 large-blended mutual funds. Approximate the mean fiveyear rate of return.

Approach

Step 1 Determine the class midpoint of each class by adding consecutive lower class limits and dividing the result by 2.
Step 2 Compute the sum of the frequencies, ∑f_i.
Step 3 Multiply the class midpoint by the frequency to obtain xi fi for each class.
Step 4 Compute ∑xi fi.
Step 5 Substitute into Sample Mean Formula (1) to obtain the mean from grouped data.

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