Rates of return on 24 mutual funds are shown.
(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?

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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