35. An analyst is trying to determine w hether the prices of certain stocks on the NASDAQ are independent o f the industry to which they belong. She examines four industries and classifies the stock prices in these industries into one o f three categories (high-priced, average-priced, low-priced).

Stock Price Industry I II III IV High 16 8 10 14 Average 18 16 10 12 Low 7 8 4 9

a. Specify the competing hypotheses to determine whether stock price depends on the industry.

b. Calculate the value of the test statistic. Approximate the p -value w ith the table or calculate its exact value with Excel.

c. At a 1% significance level, w hat can the analyst conclude?