Suppose that at the beginning of Year 1 you invested $10,000 in the Stivers mutual fund and $5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table below. Year Stivers Trippi Year 1 $10,500 $5,600 Year 2 $11,800 $6,400 Year 3 $13,000 $6,900 Year 4 $14,000 $7,700 Year 5 $14,900 $8,600 Year 6 $16,100 $9,200 Year 7 $17,000 $9,900 Year 8 $18,200 $10,600 Compute the mean annual return for the Stivers mutual fund and for the Trippi mutual fund. Do not round intermediate calculations. Stivers Trippi Mean annual return (to 3 decimals) % % Which mutual fund performed better?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
Suppose that at the beginning of Year 1 you invested $10,000 in the Stivers mutual fund and $5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table below.
| Year | Stivers | Trippi |
| Year 1 | $10,500 | $5,600 |
| Year 2 | $11,800 | $6,400 |
| Year 3 | $13,000 | $6,900 |
| Year 4 | $14,000 | $7,700 |
| Year 5 | $14,900 | $8,600 |
| Year 6 | $16,100 | $9,200 |
| Year 7 | $17,000 | $9,900 |
| Year 8 | $18,200 | $10,600 |
Compute the mean annual return for the Stivers mutual fund and for the Trippi mutual fund. Do not round intermediate calculations.
| Stivers | Trippi | ||||
| Mean annual return (to 3 decimals) | % | % |
Which mutual fund performed better?
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