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Bock Investment Services - Managerial Report 1. Use appropriate descriptive statistics to summarize the data on assets and yields for the money market funds.

The data is summarized by the most appropriate descriptive statistics in the following table for the 3 variables of interest, as a starting point in the analysis: | ASSETS | YLD_7 DAY | YLD_30 DAY | Mean | 1994.8089 | 4.1622 | 4.0982 | Median | 496.5000 | 4.1800 | 4.1300 | Mode | 1.70 | 4.16 | 3.89 | Std. Deviation | 4644.1251 | 0.3262 | 0.3253 | Range | 27003.90 | 2.12 | 2.12 | Minimum | 1.70 | 2.67 | 2.61 | Maximum | 27005.60 | 4.79 | 4.73 |

* For assets, it is very clear that the range is very big; this is a first indication that the assets data has a lot of variability. Also, mean and median are very different for assets: this is an indication that some outlier may exist, because the median is less sensitive to outliers than the average. * For the 2 yield values, there is much less variability in the data, because the standard deviation is a small percentage of the mean, and the data seems to be more centered, as mean, mode and median have similar values. 2. Develop a 95% confidence interval estimate of the mean assets, mean 7 day yield, and mean 30-day yield for the population of the money market funds. Provide a managerial interpretation of each interval estimate.

Since the sample size is n=45 (>30), I can use a standard normal distribution to compute the interval estimation; 95% confidence level corresponds from the table to z=1.96. Since the standard deviation for the population of money market funds is unknown, the standard deviation of the sample is used. Given that the sample is statistically large (>30) the error in doing that is small. The standard error for the means for the 3 variables are then the standard deviations of the sample data divided by

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