Return Assets Return Assets Return Assets 29.3 300 16.0 421 12.9 75 27.6 70 15.5 99 11.3 610 23.7 3,004 15.2 756 9.9 264 22.3 161 15.0 730 7.9 27 22.0 827 14.4 436 6.7 71 19.6 295 14.0 143 3.3 719 17.6 29 13.7 117
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.
The accompanying table shows, for a random sample of 20 long-term-growth mutual funds, percentage return over a period of 12 months and total assets (in millions of dollars).
Return Assets Return Assets Return Assets
29.3 300 16.0 421 12.9 75
27.6 70 15.5 99 11.3 610
23.7 3,004 15.2 756 9.9 264
22.3 161 15.0 730 7.9 27
22.0 827 14.4 436 6.7 71
19.6 295 14.0 143 3.3 719
17.6 29 13.7 117
a. Calculate the
b. Carry out a nonparametric test of the null hypothesis of no association in the population against a two-sided alternative.
c. Discuss the advantages of a nonparametric test for these data.
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