Chapter 1.3, Problem 95E

(a)

To determine

To find: the highest and lowest daily returns on the stock fund

Answer to Problem 95E

The highest and lowest daily returns are $-3.5\%$ and3% respectively.

Explanation of Solution

Given:

  

The stock fund is represented by the left boxplot.

The lowest daily return is represented by the end of the whisker on the bottom of the boxplot and thus is $-3.5\%$ .

The highest daily return is represented by the end of the whisker on the top of the boxplot and thus is 3%.

(b)

To determine

To find: the median return.

Answer to Problem 95E

The median return isabout 0%.

Explanation of Solution

Given:

The median return was about the same on both investments

The median return is represented by the horizontal line within the box of the boxplot and this line is at about 0%.

(c)

To determine

To find: the most important difference between the two distributions

Answer to Problem 95E

The most difference is the spread.

Explanation of Solution

The most difference is the spread.

The spread for Stocks is a lot more than the spread for Real Estate, because the distance between the whiskers of the boxplots is a lot greater for Stocks than for Real Estate.