Mutual funds are a popular way of investing in the stock market. A financial analyst wanted to

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Mutual funds are a popular way of investing in the stock market. A financial analyst wanted to determine the effect income had on ownership of mutual funds and whether the relationship had changed from four years earlier. She took a random sample of adults 25 years of age and older and asked each person whether he or she owned mutual funds (No = 1 and Yes = 2) and to report the annual household income. The categories are

1. Less than $25,000

2. $25,000 to $34,999

3. $35,000 to $49,999

4. $50,000 to $74,999

5. $75,000 to $100,000

6. More than $100,000

Can we infer from the data that household income and ownership of mutual funds are related?


Mutual Funds
Mutual funds are like a pool of funds gathered by different small investors that have simalar investment perspective about returns on their investments. These funds are managed by professional investment managers who act smartly on behalf of the...
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