1)Objective- Estimate the probability that less than 4 mutual funds are large cap

Out of 18 randomly selected the exactly 10 are large cap

Justification- Whenever the probability is qualitative we use binomial distribution
Data Analysis:
1) N=15
P=(449/867)=0.52
P(x<= 4)=0.042
2) N=18
P=(449/867)=0.52
P(X=10)=0.1785

Interpretation:
1) There is a 0.042 probability that less than 4 mutual funds are large cap/
There are 4.2% chances that less than 4 are in the category of large caps
out of 15 randomly mutual funds.

2) Obj-Estimate the probability that the expense ratio is less than or equal to 0.5
Estimate the probability that the expense ratio is greater than 1
Justification: The expense ratio is numerical data or ratio scale. So we will use
Poisson distribution.
Data Analysis:
Mean=1.19
1. P(x<=0.5) = 0.304221
2. P(X>1)= 0.333755
Interpretation:
1. 0.30 is the probability that the expense ratio is less than equal to 0.5
2. 0.33 is the probability that the expense ratio is more than 1

3) Obj- Estimate the probability that the five year returns are greater than 15.
Estimate the probability that the five year returns are less than 10
Estimate the probability that the five year returns are between 22 and 32

Data Analysis
1. P(X>15)=0.066703184
2. P(x<10)=0.680425217
3. P(22<X<32)=0.001626326
Interpretation:
1. 0.067 is the probability that

4) Obj- Estimate at 99% confidence level the sample mean for 3 year returns X

Data Analysis

Interpretation:
1. At 99% confidence level we can conclude that the 3 years returns are between 10.64 and 11.35.
5) Estimate at 99% confidence interval the population proportion of mutual funds are in the growth
category.
Justification: Data is qualitative so Z-test is used
Data Analysis:
P= 0.535178777
n=867
Z=2.57583
Interpretation:
We are 99% confident that out of 867 Mutual Funds, 49% to 57% mutual funds are the growth
category.
6) Objective

To identify the relationship between return 2006 and 3-years return

To identify the variation or fluctuation in return 2006 with respect to 3years return.
To test the validity of the proposed model at 99% confidence level

To identify the impact of 3-years return on return 2006

Data Analysis
Return
2006
Return
2006
3-Year
Return

3-Year
Return
1

0.69834
8

r = 69%
r^2 = 48.7%
p=0
Alpha = 0.01
Interpretation

From the coefficient of co-relation, there is a strong positive relationship

between return 2006 and 3-years return. There is a 49% fluctuation which
is due to 3-years return and remaining 51% fluctuation is due to
unexplained factors. At 99% level of confidence, the probability of the
model is 0 which is less than 0.01 which is alpha. So, we will conclude that
the model is statistically significant for further analysis. The proposed
model is as follows
Return 2006 = 0.619 + 1.081*3-years return
The slope is positive. So, the impact of 3-years return on return 2006 is
positive. If we increase 1 unit of 3-years return, return 2006 will increase
by 1.08 unit.