An investment advisory company studied funds available on the market: Large cap, mid-cap, and small-cap. The company randomly selected some funds and measured their 1-year return rate (2011-2012) and 3-year return rate (2011-2014), respectively. Data is supplied in both Minitab and Excel format.

In discussing the market trend, an analyst suggests that the market has slowed down, i.e., the return rate has dropped. The analyst is adamant that the average 3-year return rate of mid-cap funds is lower than their average 1-year return rate. Can you analyze the data to see if this judgment is true or not? The analyst is in a hurry, so you do not need to present a formal five-step procedure. Instead, conduct the proper analysis in Minitab (or another statistical software package), present the analysis report and state your conclusion (use significance level of 0.05).

 

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1YrReturn%_Large 3YrReturn%_Large 28.99 33.40 33.98 33.78 21.62 22.87 17.41 16.54 15.72 14.50 17.14 15.23 18.62 22.45 15.66 13.75 14.62 26.06 15.72 11.86 18.64 24.26 22.72 21.91 21.89 16.47 16.10 13.44 13.30 13.16 12.59 12.45 12.39 12.16 12.15 12.14 11.97 11.84 11.80 11.44 11.29 11.21 1YrReturn%_Mid-Cap 3YrReturn%_Mid-Cap 26.38 15.77 16.16 16.27 16.94 14.60 11.40 16.64 14.75 17.80 16.95 15.69 15.61 17.80 16.95 15.69 15.61 23.24 10.46 19.73 16.43 18.70 16.25 15.65 15.26 15.04 15.02 14.97 14.61 14.56 14.44 14.17 13.78 13.78 14.44 14.17 13.78 13.78 13.55 13.50 13.50 13.49 1YrReturn%_Small 3YrReturn%_Small 22.70 14.86 17.59 9.99 16.24 8.75 15.48 12.85 11.07 14.32 16.74 10.46 8.60 10.39 10.85 9.40 10.88 16.38 11.33 11.98 8.82 19.47 16.23 16.12 15.83 14.96 14.94 14.90 14.66 14.23 14.14 13.85 13.48 13.47 13.22 13.07 12.90 12.84 12.76 12.67 12.63 12.52 1YrReturn%_Large 3YrReturn%_Large 28.99 33.40 33.98 33.78 21.62 22.87 17.41 16.54 15.72 14.50 17.14 15.23 18.62 22.45 15.66 13.75 14.62 26.06 15.72 11.86 18.64 24.26 22.72 21.91 21.89 16.47 16.10 13.44 13.30 13.16 12.59 12.45 12.39 12.16 12.15 12.14 11.97 11.84 11.80 11.44 11.29 11.21 1YrReturn%_Mid-Cap 3YrReturn%_Mid-Cap 26.38 15.77 16.16 16.27 16.94 14.60 11.40 16.64 14.75 17.80 16.95 15.69 15.61 17.80 16.95 15.69 15.61 23.24 10.46 19.73 16.43 18.70 16.25 15.65 15.26 15.04 15.02 14.97 14.61 14.56 14.44 14.17 13.78 13.78 14.44 14.17 13.78 13.78 13.55 13.50 13.50 13.49 1YrReturn%_Small 3YrReturn%_Small 22.70 14.86 17.59 9.99 16.24 8.75 15.48 12.85 11.07 14.32 16.74 10.46 8.60 10.39 10.85 9.40 10.88 16.38 11.33 11.98 8.82 19.47 16.23 16.12 15.83 14.96 14.94 14.90 14.66 14.23 14.14 13.85 13.48 13.47 13.22 13.07 12.90 12.84 12.76 12.67 12.63 12.52

Answer rating: 100% (QA)

To determine if the average 3year return rate of midcap funds is lower than their average 1year retu... View the full answer