The following table shows the annual returns for two of Vanguard's mutual funds: the Vanguard Energy Fund

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The following table shows the annual returns for two of Vanguard's mutual funds: the Vanguard Energy Fund and the Vanguard Healthcare Fund.
The following table shows the annual returns for two of

a. Calculate and interpret the sample correlation coefficient rxy.
b. Specify the competing hypotheses in order to determine whether the population correlation coefficient is significantly different from zero.
c. At the 5% significance level, what is the conclusion to the test? Are the returns on the mutual funds significantly correlated?

Mutual Funds
Mutual funds are like a pool of funds gathered by different small investors that have simalar investment perspective about returns on their investments. These funds are managed by professional investment managers who act smartly on behalf of the...
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