Solutions Statistics

We are studying mutual bonds for the purpose of investing in several funds. For this particular stud

Question: We are studying mutual bonds for the purpose of investing in several funds. For this particular study, we want to focus on the assets of a fund and its five-year performance. The question is: Can the five-year rate of return be estimated based on the assets of the fund? Nine mutual funds were selected at random, and their assets and rates of return are shown below:

Fund	Assets ($ millions)	Return (%)
AARP High Quality Bond	$622.2	10.8
Babson Bond L	160.4	11.3
Compass Capital Fixed Income	275.7	11.4
Galaxy Bond Retail	433.2	9.1
Keystone Custodian B-1	437.9	9.2
MFS Bond A	494.5	11.6
Nichols Income	158.3	9.5
T. Rowe Price Short-Term	681.0	8.2
Thompson Income B	241.3	6.8