In the last quarter of 2007, a group of 64 mutual funds had a mean return of 2.4 % with a standard deviation of 5.6 %. If a Normal model can be used to model them, what percent of the funds would you expect to be in each region? Be sure to draw a picture first. Returns of 8.0 % or more Returns of 2.4 % or less Returns between -8.8 % and 13.6 % Returns of more than 19.2% Solution a) 76% b) 59% c)83% d)39%.

1. In the last quarter of 2007, a group of 64 mutual funds had a mean return of 2.4 % with a
standard deviation of 5.6 %. If a Normal model can be used to model them, what percent of the
funds would you expect to be in each region? Be sure to draw a picture first. Returns of 8.0 %
or more Returns of 2.4 % or less Returns between -8.8 % and 13.6 % Returns of more than
19.2%
Solution
a) 76% b) 59% c)83% d)39%