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We are studying mutual bond funds for the purpose of investing in several funds. For this particular study, we want to focus on the
We are studying mutual bond funds for the purpose of investing in several funds. For this particular study, we want to focus on the assets of a fund and its five-year performance. The question is: Can the five-year rate of return be estimated based on the assets of the fund? Nine mutual funds were selected at random, and their assets and rates of return are shown below: Assets Fund ($ millions) Return (%) Assets Return ($ Fund (%) millions) AARP High Quality Bond $622.20 10.80 MFS Bond A $494.50 11.60 Babson Bond L 160.40 11.30 Nichols Income 158.30 9.50 Compass Capital Fixed Income Galaxy Bond Retail Keystone Custodian B-1 433.20 437.90 275.70 11.40 9.10 9.20 T. Raive Price Short-term Thompson Income B 681.00 8.20 241.30 6.80 a. Draw a scatter diagram. Scatter Diagram x=622.2 Return 20 15- x=160.4 x=275.7 x=433.2 10 x=437.9 5-
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