An eco nom ist w ants to d e te rm in e w h e th e r average Price/

Earnings (P/E) ratios d iffer fo r firm s in th re e industries.

In d e p e n d e n t sam ples o f fiv e firm s in each in d u s try s h o w th e follow ing results:

In d u s try A 12.19 12.44 7.28 9.96 10.51 In d u s try B 14.34 17.80 9.32 14.90 9.41 In d u s try C 26.38 24.75 16.88 16.87 16.70

a. Construct an ANOVA table.

b. At th e 5 % significance level, d e te rm in e w h e th e r average P/E ratios differ in th e three industries.

c. If differences exist, use Tukey's test a t th e 5 % significance level to d eterm in e w h ich in dustries'm ean P/E ratios differ.P-36