Betty and Bob Mutual Fund has generated the following rates of return for the last six years respectively:
.18, -.15, .30, .06, .24, .10
a. Compute the median.
b. Compute the sample standard deviation.
c. Compute the effective rate of return for the 6 year period.
a, median
the median is the value separating the higher half from the lower half of a data sample, here the population size is 6 and for the data .18, -.15, .30, .06, .24, .10 rearranging accordingly -.15,.06,.10,.18,.24,.30 and the median is 0.14
b,standard deviation
the standard deviation is a measure of the amount of variation or dispersion of a set of values.
the standard deviation is 0.14
c, effective rate of return
(current value-orginal value)/current value*100
= ( .10-.18)/0.18
=44.44%
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