7 Mutual funds are classified as load or no load funds Load funds require an investor to pay an initial fee based on a percentage of the amount invested in the fund The no load funds do not require this initial fee Some financial advisors argue that the load mutual funds may be worth the extra fee because these funds provide a higher mean rate of return than the no load mutual funds A sample of 30 load and 30 no load funds were selected Data were collected on the annual return for the funds over a five year period Mutual Funds Load Return Mutual Funds No Load Return American National Growth 15 51 Amana Income Fund 13 24 Arch Small Cap Equity 14 57 Berger One Hundred 12 13 Bartlett Cap Basic 17 73 Columbia International Stock 12 17 Calvert World International 10 31 Dodge Cox Balanced 16 06 Colonial Fund A 16 23 Evergreen Fund 17 61 Common Sense Growth 16 04 Fidelity Fund 20 61 Corefund Core Equity 18 77 Forthis Advtg Cap App 13 38 Davis Convert Seurities 18 21 Founders Blue Chip Fund 17 15 Deleware Small Cap 17 27 Goldman Core Fixed Income 10 38 Dreyfus Premium Value 11 95 Heartland Value 18 15 Federated Stocks Bonds 13 81 Janus Fund 15 82 First Invest FD for Income 12 44 Manstay Cap Appriciation 17 29 Flag Inv Emerging Growth 15 39 Merrill Spec Value 16 42 Fortis Equity Capital 13 46 Mutual Beacon 19 49 FPA Capital 23 66 Oberweis Emerging Growth 11 06 Franklin STR GL UT 17 38 Paine Webber Growth Income 13 89 Gabelli Value Fund 22 45 Pimco Total Return 8 43 IDS New Dimensions 18 38 Prudential Equity 18 29 John Hancock Growth Income 18 06 Putnam Growth Income 17 80 Lord Abbett Dev Growth 22 75 Royce FD Micro Cap 17 05 Merrill Basic Value 20 35 Scudder Development 12 80 MFS World Tot Return 13 09 Smith Barney Appreciation 15 09 New England Growth Opp 18 16 Stein Roe Capital Oppty 19 70 Oppenhmr Quest Small Cap 14 47 T Rowe Price Balanced 13 57 Phoenix Worldwide 15 78 Thompson Plumb Growth 18 58 Princor Bond 8 40 USAA Growth Tax Strat 11 89 Stagecoach Disd Income 16 52 Vanguard Equity Income 19 00 United Contl Income 12 59 Vanguard Windsor 20 71 Victory OH Regional 18 24 Vontobel Intl Equity 13 56 Zweig SR TR Apprec 14 80 With Value 19 82 The data are contained in the data set Mutual Conduct an appropriate hypothesis test to determine whether the load funds have a higher mean annual return over the five year period Include the error you might be committing 8 Suppose that it is generally accepted that the variance in returns for the Mutual question is considered equal for no load and load funds Redo your calculations as necessary

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7. Mutual funds are classified as load or no-load funds. Load funds require an investor to pay an initial fee based on a percentage of

7. Mutual funds are classified as load or no-load funds. Load funds require an investor to pay an initial fee based on a percentage of the amount invested in the fund. The no load funds do not require this initial fee. Some financial advisors argue that the load mutual funds may be worth the extra fee because these funds provide a higher mean rate of return than the no-load mutual funds. A sample of 30 load and 30 no-load funds were selected. Data were collected on the annual return for the funds over a five-year period.

Mutual Funds - Load	Return	Mutual Funds - No Load	Return
American National Growth	15.51	Amana Income Fund	13.24
Arch Small Cap Equity	14.57	Berger One Hundred	12.13
Bartlett Cap Basic	17.73	Columbia International Stock	12.17
Calvert World International	10.31	Dodge & Cox Balanced	16.06
Colonial Fund A	16.23	Evergreen Fund	17.61
Common Sense Growth	16.04	Fidelity Fund	20.61
Corefund Core Equity	18.77	Forthis Advtg Cap App	13.38
Davis Convert Seurities	18.21	Founders Blue Chip Fund	17.15
Deleware Small Cap	17.27	Goldman Core Fixed Income	10.38
Dreyfus Premium Value	11.95	Heartland Value	18.15
Federated Stocks & Bonds	13.81	Janus Fund	15.82
First Invest FD for Income	12.44	Manstay Cap Appriciation	17.29
Flag Inv Emerging Growth	15.39	Merrill Spec Value	16.42
Fortis Equity Capital	13.46	Mutual Beacon	19.49
FPA Capital	23.66	Oberweis Emerging Growth	11.06
Franklin STR GL UT	17.38	Paine Webber Growth & Income	13.89
Gabelli Value Fund	22.45	Pimco Total Return	8.43
IDS New Dimensions	18.38	Prudential Equity	18.29
John Hancock Growth & Income	18.06	Putnam Growth & Income	17.80
Lord Abbett Dev Growth	22.75	Royce FD Micro-Cap	17.05
Merrill Basic Value	20.35	Scudder Development	12.80
MFS World Tot Return	13.09	Smith Barney Appreciation	15.09
New England Growth Opp	18.16	Stein Roe Capital Oppty	19.70
Oppenhmr Quest Small Cap	14.47	T Rowe Price Balanced	13.57
Phoenix Worldwide	15.78	Thompson Plumb Growth	18.58
Princor Bond	8.40	USAA Growth & Tax Strat	11.89
Stagecoach Disd Income	16.52	Vanguard Equity Income	19.00
United Contl Income	12.59	Vanguard Windsor	20.71
Victory OH Regional	18.24	Vontobel Intl Equity	13.56
Zweig SR TR Apprec	14.80	With Value	19.82

The data are contained in the data set Mutual. Conduct an appropriate hypothesis test to determine whether the load funds have a higher mean annual return over the five-year period. Include the error you might be committing.

8. Suppose that it is generally accepted that the variance in returns for the Mutual question is considered equal for no-load and load funds. Redo your calculations as necessary.