Question 1.64

1.64 Returns on Treasury bills.

CASE 1.1 Figure 1.16(a) (page 34) is a stemplot of the annual returns on U.S. Treasury bills for 50 years. (The entries are rounded to the nearest tenth of a percent.)

tbill50

  1. Use the stemplot to find the five-number summary of T-bill returns.
  2. The mean of these returns is about 5.19%. Explain from the shape of the distribution why the mean return is larger than the median return.