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A stock analyst wondered whether the mean rate of return of financial, energy and utility stocks differed over the past 5 years. He obtained a

A stock analyst wondered whether the mean rate of return of financial, energy and utility stocks differed over the past 5 years. He obtained a simple random sample of eight companies from each of the three sectors and obtained the 5-year rates of return shown in the following table (in percents):

Financial

Energy

Utilities

10.76

12.72

11.88

15.05

13.91

5.86

17.01

6.43

13.46

5.07

11.19

9.90

19.50

18.79

3.95

8.16

20.73

3.44

10.38

9.60

7.11

6.75

17.40

15.70

Required:

(a) State the null and alternative hypothesis.

(b) Are the mean rates of return different at the alpha = 0.05 level of significance? Please explain your answer, citing numeric and other evidence in support of your response.

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