Suppose that you are facing a decision about where to invest that small fortune that remains after you have deducted the anticipated expenses for the next year from the earnings from your current job. A friend has suggested types of investment, and to help make the decision, you acquire some rates of return from each type. You would like to know what you can expect by way of the return on your investment, as well as other types of information such as whether the rates are spread out over a wide range (making the investment risky) or grouped tightly together (indicating relatively low risk). Do the data indicate that it is possible that you can do extremely well with little likelihood of further loss? Is it likely that you could lose money (negative rate of return)? The returns for the two types of investments listed here: Draw box plots for each set of returns and report your findings. Which investment would you choose and why?

Returns for Investment 1: 30.06, 6.93, 13.77, 22.13, 13.24, 22.42, 5.29, 4.30, 18.95, 34.40, -7.04, 25.00, 9.43, 49.87, -12.21, 12.89, 1.21, 22.92, 12.89, 20.24, 31.76, 20.95, 63.00, 1.20, 11.07, 43.71, -19.27, 2.59, 8.47, -12.83, -9.22

Returns for Investment 2: 30.33, 34.75, 30.31, 24.30, 30.37, 54.19, 6.06, 10.01, 3.61, 44.14, 14.73, 35.24, 29.00, 20.23, 36.13, 40.70, -26.01, 4.16, 15.3, 22.18, 0.46, 10.03, 17.61, 3.24, 2.07, 10.51, 1.20, 25.10, 29.44, 39.04, 9.94

Q&A Education