Question
A stock analyst wants to determine whether there is a difference in the mean return on equity for three types of stock: utility, retail, and
A stock analyst wants to determine whether there is a difference in the mean return on equity for three types of stock: utility, retail, and banking stocks. The following output is obtained:
Analysis of Variance
SourceDFAdj SSAdj MSF-ValueP-Value
Factor2303.697151.8485.500.202
Error12331.38127.615
Total14635.077
a.Using the .05 level of significance, is there a difference in the mean return on equity among the three types of stock?
b.Can the analyst conclude there is a difference between the mean return on equity for utility and retail stocks? For utility and banking stocks? For banking and retail stocks? Explain.
Please include steps on how you got to the answer so I can learn from it.
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