Case Problem 3: Bock Investment Services(Estimation)

Lisa Rae Bock started Bock Investment Services (BIS) in 1994 with the goal of making BIS the leading money market advisory service in South 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 results 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 sample random sample of 45 money market funds. The Data File “Bock”, reports fund assets and yields for the past seven and 30 days. Before calling the money market fund managers to obtain additional data, Lisa decided to do some preliminary analysis of the data already collected.

Managerial Report

1. Use appropriate descriptive statistics to summarize the data on assets and yields for the money market funds.
2. Develop a 95% confidence interval estimate of the mean assets, mean 7-day yield, and mean 30-day yield for the population of money market funds. Provide a managerial interpretation of each interval estimate
3. Discuss the implication of your findings in terms of how Lisa could use this type of information in preparing her weekly newsletter.
4. What other information would you recommend that Lisa gather to provide the most useful information to her clients?

(This case problem is due to Anderson, Sweeney, and Williams for Classroom