Assignment 1 Bock Investment Services
Bock Investment Services
Lisa started Bock Investment services in 1994 with the goal of making BIS the leading money market advisory service in Southern Carolina. To provide better service for her present clients and to attract new clients, she has developed a weekly newsletter. Lisa has been considering adding a new feature to the newsletter that will report the result 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, Lisa selected a simple random sample of 45 money market funds. Before calling the money managers fund to collect new data, Lisa decided to do some preliminary analysis of the data already collected.
1. Use appropriate descriptive statistics to summarize the data on assets and yields for the money market funds.
I will summarize the most appropriate descriptive statistics in the following table for the 3 variables of interest, as a starting point in the analysis:
ASSETS
YLD_7DY
YLD_30DY
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
.3262
.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.
Looking at a Box&Whisker box plot for the assets data, the presence of the outliers becomes visually clear:
It is not surprising to see “big names” in the extreme outliers: those are the money market funds with huge assets values.
As a
Lisa started Bock Investment services in 1994 with the goal of making BIS the leading money market advisory service in Southern Carolina. To provide better service for her present clients and to attract new clients, she has developed a weekly newsletter. Lisa has been considering adding a new feature to the newsletter that will report the result 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, Lisa selected a simple random sample of 45 money market funds. Before calling the money managers fund to collect new data, Lisa decided to do some preliminary analysis of the data already collected.
1. Use appropriate descriptive statistics to summarize the data on assets and yields for the money market funds.
I will summarize the most appropriate descriptive statistics in the following table for the 3 variables of interest, as a starting point in the analysis:
ASSETS
YLD_7DY
YLD_30DY
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
.3262
.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.
Looking at a Box&Whisker box plot for the assets data, the presence of the outliers becomes visually clear:
It is not surprising to see “big names” in the extreme outliers: those are the money market funds with huge assets values.
As a