Mutual fund returns 2017 We have a sample of municipal mutual funds that report their return (%) in the previous 3years and the previous 5 years.

1. Create a 95% confidence interval for the difference in rate of return for the 3- and 5-year periods covered by these data. Clearly explain what your interval means.

2. It’s common for advertisements to carry the disclaimer that “past returns may not be indicative of future performance,” but do these data indicate that there was an association between 3- and 5-year rates of return?

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Fund Muni California Long 3 year (%) 5 year (%) 3.81 3.85 Muni National Long 3.41 3.12 Muni California Intermediate 2.63 2.71 Muni National Interm 2.64 2.55 Muni New York Long 3.35 2.84 Muni New Jersey 2.89 2.52 3.1 2.68 2.69 2.3 2.39 2.52 2.38 2.16 2.23 1.16 0.95 Muni Pennsylvania Muni Massachusetts Muni New York Intermediate 2.57 Muni Minnesota 2.66 2.64 2.36 2.67 1.24 0.93 Muni Ohio Muni Single State Interm Muni Single State Long Muni Single State Short Muni National Short