Revised 8/24/99
Mutual Fund Performance
Standard Deviation and the Computer
Worksheet 7

1. Open the new file FNDPRF2.XLS.

2. Find the mean and sample standard deviation of the pre- and post-tax performance
    values. Use stdev(…) function.

3. Are the relative magnitudes of the means of the two variables reasonable? (Is the
    one that you would expect or reason to be largest, indeed the largest?)    Explain.

4. Is risk greater or less than it appears, if you only look at pre-tax rather than
    post-tax values to discuss riskiness in predicting performance?     Explain.

5. Do the relative magnitudes of the mean, median, and mode of pre-tax
    performances fit the expected sequence for the pattern exhibited in a histogram of
    the values?     Explain.

6. If you select a random sample of 20 pre-tax values and a random sample of 20
    post-tax values, then compute the mean of each sample, in which case do you have
    the best chance of getting a sample mean close to its population's m?         Explain.
 

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