Figure 16 displays the histogram obtained in Example 4 for the five-year rate of return for large-blended mutual funds. Describe the shape of the distribution.

Approach We compare the shape of the distribution displayed in Figure 16 with those in Figure 15.

Figure 15

Data from Example 4

Construct a frequency and relative frequency histogram of the five-year rate of- return data discussed in Example 3.

Data from Example 3

Suppose you are considering investing in a Roth IRA. You collect the data in Table 12, which represent the five-year rate of return (in percent, adjusted for sales charges) for a simple random sample of 40 large-blended mutual funds. Construct a frequency and relative frequency distribution of the data.

Transcribed Image Text:

Frequency Frequency 50+ 40 30 20 10 20 5 0+ o 30+ 024 6 8 10 12 14 16 18 20 (a) Uniform (symmetric) Frequency Frequency 60+ 50 40 30 20 10- 0+ 0 16+ 5 10 15 20 25 30 35 40 45 (b) Bell-shaped (symmetric) 628 12 0 0 10 20 30 40 50 60 70 80 20 40 60 80 100 120 140 160 (c) Skewed Right (d) Skewed Left