# See the graph of data below to answer the following questionObtain a 95% confidence interval for the difference between the mean rates of return.  Interpret the interval.

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See the graph of data below to answer the following question

Obtain a 95% confidence interval for the difference between the mean rates of return.  Interpret the interval.

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Step 1

Procedure to find sample mean, standard deviation and sample size using Excel:

• In Excel sheet, enter Returns of large value mutual fund and Returns of large growth mutual fund in different columns.
• In Data, select Data Analysis and Choose Descriptive Statistics.
• In Input Range, select Returns of large value mutual fund and Returns of large growth mutual fund and click Labels in First Row.
• Select Summary Statistics.
• Click OK.

Output using Excel is shown below:

Step 2

Here, n1 = 15, n2 = 15, s12 is 0.8518 and s22  is 6.3092.

Find the pooled sample standard deviation:

Step 3

Obtain the critical value:

The required confidence level is 100*(1–α)% = 95%.

That is, the level o...

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