ANSWER PART D ONLY

Data collected on the annual percent returns on gold prices show an annual average of 9.67% with a standard deviation of 23.91% from 1971 to 2019. On the other hand, the annual average percent return for the S&P 500 index fund is 8.93% with a standard deviation of 16.67% during the same time period.

a. Construct a 99% CI estimate of the annual average percent return for gold prices.

b. Construct a 99% CI estimate of the average percent return for the index fund.

c. Explain whether your answers to parts a and b suggest that one investment type yields a higher average return than the other.

d. Assuming that all the sample statistics remain the same explain whether it is possible within our lifetime to use the 99% CI estimates to infer that the index fund has a lower average annual return than gold.