1) BusinessWeek published information on 283 equity mutual funds (BusinessWeek, January 26, 2004). A sample of 40 of those funds is contained in the dataset MutualFund. Use the data set to answer the following questions.
a. Develop a point estimate of the proportion of the BusinessWeek equity funds that are load funds.
b. Develop a point estimate of the proportion of funds that are classified as high risk.
c. Develop a point estimate of the proportion of funds that have a below-average risk rating. (Excel File attached)
2) The price of a particular brand of jeans has a meanof $37.99 and a standard deviationof $7. A sample of 49 pairs of jeans is selected. Use Excel to answer the following questions.
a.What is the probabilitythat the sample of jeans will have a mean price less than $40?
b.What is the probability that the sample of jeans will have a mean price between $38 and $39?
c.What is the probability that the sample of jeans will have a mean price within $3 of the population mean?
The solution provides step by step method for the calculation of probabilities and sampling distribution. Formula for the calculation and Interpretations of the results are also included.