. .. Group project 2 Q Mutual Funds Workbook Case Winter 2018 Contents Overview Sheet Summary of this workbook Data Sheet Data for 137 mutual funds A1:A138 Fund Names B1:B138 Objective C1:C138 Sales Charge ( Use1 for Yes and 0 for No) D1:D138 Expense Ratio E1:E138 Risk F1:F138 Return 1999 G1:G138 Return Q1-2000 H1:H138 Three-year Return Comm215 Sections H & G Due Date April 4, 2018 e yc ticulInferential Statistics Using Mutual Funds database : Mutual funds are the most common way people invest for the future with more than $20 trillion in investment assets. They are so popular because they are a simple, convenient way to invest in stocks, bonds, money markets, commodities and other securities. Nearly half of all Canadian households invest in mutual funds. These professionally managed investment products use money from investors to create a diversified pool of securities to achieve a specific investment objective. Investors purchase shares, which represent ownership in the mutual fund. The price of the fund fluctuates based on the gain or loss of the securities that make up the fund. Because each mutual fund has a specific investment objective, such as growth, capital preservation, or income, it is important to understand which funds are designed to meet the investor objectives. For example Asset Allocation Funds invest in a mix of stocks, bonds, alternatives and money market securities, where as TK Funds emphasize on the Science and Technology stocks. To complete your assignment; Your group has been selected as a consultant team by a financial firm to perform a statistical analysis of the Mutual Funds Case. Your 1 page report in Word should show your final recommendation based on the statistical analysis. The 4-case questions will assist you in your database analysis. The database containing the following variables in Excel spreadsheet called MutualFundsfile.xls. - Fund Names -Objective - Sales Charge (Use] for Yes and 0 for No) - Expense Ratio - Risk (High, Average and Low) - Return 1999- Return Q1-2000 - Three-year Return In your analysis you are required to answer at least the following 4 - case questions (but not limited to). 1. Construct a contingency table between Risk and Sales Charge. Use your table to show whether there is a relationship between the two variables at a = 5% significance level. Explain your conclusion in the context of the problem. For the Average risk funds only, test the proportion of funds with the Sales Charge differs from 0.50 use a = 0.05. Explain your conclusion. 2. For the Average risk funds only, set up a 95% confidence interval for the proportion of funds with the Sales Charge and compare your conclusion with the one in the previous part