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A mutual fund is a professionally managed investment that can be sold to the general public. The following table lists the 3-month rates of return, in percent, for samples of healthcare-related and technology-related mutual funds, as reported by Morningstar, an independent investment research company.\
a) Use the technology of your choice to obtain normal probability plots and boxplots for the two samples.
b) Is it reasonable to use the pooled t~test to perform a hypothesis test here? Explain your answer.
c) Is it reasonable to use the Mann-Whitney test to perform a hypothesis test here? Explain your answer.
Solution
Verified(a)
The data values are on the horizontal axis and the standardized normal scores are on the vertical axis.
If the data contains data values, then the standardized normal scores are the z-scores in the normal probability table of the appendix corresponding to an area of (or the closest area) with .
The smallest standardized score corresponds with the smallest data value, the second smallest standardized score corresponds with the second smallest data value, and so on.
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