Nuwest Inc. is an investment service established in 1990 with the goal of becoming
the leading money market advisory service in the city. To provide better service for their
present clients and to attract new clients, they have developed a weekly newsletter. They
have been considering adding a new feature to the newsletter that will report the results
of a weekly telephone survey of fund managers. To investigate the feasibility of offering
this service, and to determine what type of information to include in the newsletter,
Nuwest's research office initiated a study and selected a simple random sample of 45
money market funds. The data set, consisting of Fund Assets (millions $), 7-day yields
(%), and 30-day yields (%), is given in Excel format as Nuwest Investment. Before
calling the money market fund managers to obtain additional data, the researchers
decided to do some preliminary analysis of the data already collected.
Use appropriate descriptive statistics to summarize the data on assets and yields for the
money market funds.
Develop a 95% confidence interval estimate of the mean assets, mean 7-day yield, and
mean 30-day yield for the population of money market funds. Provide a managerial
interpretation of each interval estimate.
Discuss the implications of your findings in terms of how Nuwest Inc. could use this
type of information in preparing the weekly newsletter.
We have been learning
t test, z test, estimates, hypothesis testing, and inference between 2 pops.